Hard Money Loans » Federal Housing Administration

Rising FHA Business to Fall

Real Estate Investor — Tue, 21 Jun 2011 14:53:38 +0000

Last month, the Federal Housing Administration endorsed over 2,500 more mortgages than in April. On a dollar-volume basis, production was up around $0.1 billion. Overall activity appears to be headed lower based on new applications, which were down more than a quarter in May.

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U.S. Bank Settles on FHA Loans

Real Estate Investor — Sun, 22 May 2011 14:55:42 +0000

A settlement with U.S. Bank was announced by the Department of Housing and Urban Development. The bank allegedly did not meet underwriting standards on more than two dozen Federal Housing Administration mortgages. The agreement calls for a payment of more than $1 million.

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MortgageIT Sued Over Faulty FHA Loans

Real Estate Investor — Wed, 04 May 2011 15:22:53 +0000

Deutsche Bank AG and subsidiary MortgageIT “repeatedly lied” on Federal Housing Administration originations, according to a civil lawsuit filed by the U.S. Department of Justice. MortgageIT “recklessly selected mortgages that violated program rules in blatant disregard of whether borrowers could make mortgage payments,” the suit alleges. Deutsche Bank said it is still reviewing the complaint.

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HUD Restricts Use of Logo

Real Estate Investor — Tue, 19 Apr 2011 14:52:13 +0000

The Department of Housing and Urban Development has released a mortgagee letter outlining requirements that impact the use of government logos when advertising Federal Housing Administration programs. HUD provided copies of two logos that can be used by approved mortgagees. HUD said that any advertisements must emphasize the mortgagee and not FHA or HUD.

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New report finds fewer banks failing

Real Estate Investor — Tue, 05 Apr 2011 14:26:44 +0000

Ayinde O. Chase – AHN News Editor

Dallas, TX, United States (AHN) – According to the latest data, a 37 percent year-over-year decline in bank failures has resulted in the number of mortgage-related operations to close or fail during the first quarter.

However despite the subdued banking activity, the reverse mortgage sector continued to be pummeled.

During the first three months of 2011, a total of 37 mortgage-related firms or departments either failed or were closed down by management, based on an analysis by MortgageDaily.com.

Analysts said the drop is a result of a slowdown in the number of bank failures. As of the end of March, just 26 bank failures had been reported by the Federal Deposit Insurance Corp.

However, at the end of the first quarter last year 41 federally insured banks had already failed.

The latest quarter also saw fewer failed banks than the 30 in the final quarter of 2010.

Within the latest quarter, three banks failed in March however 23 banks failed between January and February.

“One sector that saw the exit of high-profile players was reverse mortgage lending,” said Sam Garcia, founder and publisher of Mortgage Daily.

He went on to say, “During the first quarter, Bank of America Home Loans disclosed plans to abandon reverse mortgage lending, Financial Freedom’s parent OneWest Bank Group LLC said it decided to pull the plug on reverse lending, and Wells Fargo Home Mortgage announced it would eliminate its wholesale reverse mortgage channel.”

During fiscal 2010, only 96,971 home-equity conversion mortgages were endorsed by the Federal Housing Administration, falling from the previous year’s 162,619.

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Private M.I. Firms Gain on FHA

Real Estate Investor — Sat, 30 Oct 2010 14:56:08 +0000

The Mortgage Insurance Companies of America reported that its members issued 6 percent more policies in September than in August. At the same time, endorsements fell 6 percent at the Federal Housing Administration. MICA also reported that new mortgage insurance applications were virtually unchanged.

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FHA Third-Party Program Launched

Real Estate Investor — Sun, 24 Oct 2010 14:58:01 +0000

Fairway Independent Mortgage Corp. announced a new third-party origination program. The program is for loans insured by the Federal Housing Administration. According to the company, options available inlcude a referral relationship, traditional brokering and correspondent lending.

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FHA Purchase Real Estate Financing

Real Estate Investor — Mon, 01 Feb 2010 00:23:53 +0000

If you need to obtain necessary financing for the purchase of a home it is important for you to know that there are alternative lending sources other than banks and traditional lenders that you can use for a mortgage, even if your credit or other circumstances are less than ideal. There are government sponsored programs that allow a variety of people wit different backgrounds to purchase a home with a low or no down payment and affordable interest rate. Fha purchase financing is an option many people who are involved in the buying process.

Fha purchase financing is financing insured by the Federal Housing Administration which is a government owned organization that works to extend mortgages to people who do not meet traditional lending criteria. The Fha was established under the National Housing Act, with their goal being to extend financing to people with repayment abilities who otherwise lack the ability to get a traditional loan. The FHA does not provide the finances necessary to fund a loan, however, they insure the loans of those buyers who use their programs allowing lenders who would not otherwise be able to extend them financing to give buyers a loan.

Because the Fha insures loans against default, they have opened up the prospect of homeownership for people who had previously been unable to get a loan. First time homebuyers, minority borrowers, buyers with a poor credit history or a lack of credit, and prospective homebuyers who do not have a lot of money for a down payment or closing costs can purchase a home because of Fha purchase financing.

Fha mortgages have many benefits. The major benefits to Fha mortgages are that they require a low down payment, usually 3% of the home’s purchase price which is much lower than the conventional 10 to 20%, closing costs can be included in the loan, credit requirements are much lower than with traditional loans, and other requirements such as cash reserves may not have to be met like with traditional lenders.

If you are trying to purchase a home and have had trouble attaining financing you should speak with a Fha approved mortgage broker. They will be able to tell you the details of Fha purchase financing and what qualifications you will have to meet in order to get financing. Fha approved mortgage brokers can help you navigate the process of home buying and find a loan that is compatible for your unique situation.

Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes.
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