The new Hope loan program created under the FHA reform measure has been variously described as a “bailout” and a “giveaway.” You wonder if the folks opposed to the FHA measure actually bothered to read it.
In the realm of non-news, we have various lenders now focusing on the joys of FHA lending and explaining how FHA mortgages are largely unknown to the public — thus the sudden need for the expertise of these lenders. This, of course, is difficult to believe.
The FHA program has been in place since 1934. More than 34 million loans have been issued with FHA backing. The FHA program is about as secretive as pro football on a Sunday.
JDJ writes and says:
“I’d like to hear your thoughts on the effectiveness of the “world-class regulator” for the GSEs that this legislation would create.
“It seems to me that a strong regulator looking at the Fan and Fred is going to want them to lever way, way down. That would entail buying fewer mortgages and holding onto fewer in their portfolio. Moving away from their current 65 to 1 leverage to something in the high teens.
The chairman of the House Financial Services, Rep. Barney Frank (D-MA) and Housing and Community Opportunity Subcommittee Chairwoman Maxine Waters (D-CA) want the mortgage industry to halt foreclosures until October 1st. That’s when the provisions of the FHA bill go into effect.
Look for fireworks if HUD cannot get the foreclosure relief measure up and running by October 1st. Also, look for congressional hearings to pressure HUD and private-sector lenders to get revised programs in place before October 1st.
By a vote of 72-13 the Senate on Saturday wrapped up H.R. 3221: The Foreclosure Prevention Act of 2008.
Next, the bill — which includes important provisions for FHA mortgage borrowers — moves to President Bush for a signature or veto. The White House says it will now sign the bill, a measure which it had threatened to veto.
The Senate has closed off additional debate on the FHA modernization bill that was earlier approved by the House. The vote for cloture was 80-13.
What this means: The Senate will now vote on the full bill. This could happen later today, Friday, but there could be some delay which would result in a Saturday vote. (The reason to push for a Friday vote is so that Senators can return to their states for weekend politicking.)
If FHA reform goes through as the legislation is currently written, then thousands of borrowers will soon find that they have a new FHA mortgage insurance premium (MIP).
HUD has been trying to bulk up collections from borrowers by changing the way it charges for FHA insurance. Instead of the flat-rate, one-size-fits-all system that has read more
Marc Brinitzer wrote and said “here in Sacramento and in California in general, values have fallen 50% in the last couple of years.
“The crisis this has created is far beyond that of resetting subprime and neg am loans. Even those read more
By a vote of 272-152 the House passed H.R. 3221: The Foreclosure Prevention Act of 2008.
Next, the bill goes back to the Senate for final approval. However, while passage by the Senate is expected, the final vote is unlikely until Friday at read more
If all goes according to plan, FHA reform will be taken up and passed by the House this week.
In the midst of the cheers for the many advances contained in the bill, one sure outcome will be a second look at downpayment assistance plans (DPAs).
It now seems entirely likely that DPAs will be read more
I spent part of yesterday at the “Save The Dream,” an effort by the Neighborhood Assistance Corporation of America (NACA). Held at a major hotel in downtown Washington, there were more than 100 tables with computers and counselors helping homeowners with toxic loans who faced foreclosure.
There were perhaps 1,000 people at the hotel on a Monday read more
In the St. Charles (IL) Journal, writer Keith McCulloh raises an interesting question: “Is there really a housing crisis?”
McCulloh, president of the local Realtor Association, makes these points:
First, his community is doing relatively well — he says home values have only dropped 2.2 percent during the past year.
Second, he says “there are 120 million read more
The item below appears in the Federal Register of July 14th.
Please leave a comment if you know what the announcement means (or if you would like to guess, take a shot in the dark, make up something, etc. that’s okay read more
For the last two weeks of June the FHA again did virtually nothing to help stranded homeowners with toxic loans.
The latest figures from HUD show that despite big claims for the period from June 16 through June 30 the FHA refinanced just 198 delinquent conventional mortgages. This is down 22 percent from the first 15 days of the month read more
We first wrote about Moe Bedard last August. He had posted a list of lender contact numbers for those facing foreclosure and we thought, aha, this is information that can help folks.
Just as interesting, Bedard wanted others to publish his list. So we did, with credit read more
Below is the announcement of changes to the FHASecure program.
What’s new? Two things.
First, HUD is loping off the borrowers most in need. When the FHASecure program was first announced the FHA, a high-ranking FHA official told reporters that virtually all delinquent borrowers would be welcomed into the program. He specifically mentioned read more
The Federal Reserve issued the statement below on Sunday night at 6 PM — this is at the opening of Australian stock trading and thus timed to reduce turmoil in securities markets worldwide.
For years Fannie Mae and Freddie Mac have each had the ability to withdraw $2.5 billion directly from the U.S. Treasury. The new read more
Late Friday afternoon the Senate voted 63-5 to approve FHA reform. The measure, H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act, now goes to the House for consideration. In practice, the House and Senate versions of the measure will be combined into a finalized form by a conference committee and then read more
The FHA bill has not cleared the Senate, but it could happen today, Friday.
July 4th was a week ago and here is today’s interesting thought:
Congress was not in session for a few days during the past week — as the old joke goes, the time when the Nation is safest….
Senators and representatives read more
One of the smartest ideas remaining in the FHA and VA programs is the concept of streamline refinancing.
Essentially the idea is that if you can afford your current mortgage you can surely afford your current mortgage if the monthly payments are reduced. The result is that with a streamline refinance there are relatively few read more
Get a FHA Mortgage Quote today!
Peter G. Miller is a syndicated real estate and personal finance columnist who appears in more than 100 newspapers nationwide. His columns for Realty Times are carried by thousands of websites. Author of The Common Sense Mortgage -- a book with unit sales well into six figures -- Mr. Miller has been featured on such media outlets as Oprah, The Today Show, NPR and CNN.
Mr. Miller's work also appears on such sites as RealtyTrac and Mortgage Lenders Plus, and he has been a long-time columnist with the leading magazine for real estate brokers, the Real Estate Professional.
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