Existing FHA loan paid off through an FHA streamline refinance. Cabalsi met a couple looking to refinance their existing FHA loan. Since they had bought their home more than three years ago, their interest rate was at 5.25 percent. “The difference from market rates in 2009 compared to today is huge. People who got an FHA loan around 2009 have more options for rate and costs when streamline refinancing,” he said. “With rates at historical lows, I haven’t had any borrower opt to pay points for a below-market rate in almost two years. In their gut, it doesn’t make
Consumers who don’t have a lot of cash to put down when buying a house usually have to pay a higher rate than typical borrowers for the first few years of their mortgage. Now, thanks to a change at a government program, they will have to pay that elevated rate for as long as 30 years. This is apparently how the Federal Housing Administration plans to shore up its finances. Lenders generally require borrowers to take out mortgage insurance when they don’t put down 20% of a home’s purchase price or have 20% equity when refinancing their mortgage. The FHA is the
If you are looking to buy a home and are interested in a loan from the Federal Housing Administration, you need to be aware of several changes in FHA requirements that could affect you. FHA is raising its mortgage insurance premiums and changing MIP cancellation policies. These new requirements are needed to strengthen the solvency of the mortgage insurance fund, which incurred financial losses during the economic and housing downturn. FHA faces financial problems stemming from losses on reverse mortgages and forward loans sustained during the housing crisis
The lending landscape shifted measurably this month when the standard-bearer for first-time buyers and low-to-moderate income borrowers became more expensive than its private business counterpart. On April 1, fees for low-down-payment mortgages insured by the Federal Housing Administration rose for the third time in two years. The hike in fees serves a twofold purpose: to help shore up the FHA’s sagging mortgage insurance fund, which is dangerously low; and to reduce the government’s footprint in the mortgage market. Only time will tell whether the first
This year’s federally-mandated annual independent Federal Housing Administration (FHA) audit was completed recently, and not surprisingly, every media channel I saw (The New York Times, Los Angeles Times, and Wall Street Journal to name a few) focused on the single piece of negative data that was there. Am I surprised? No. Does this type of coverage on housing help the recovery and instill confidence in homebuyers and sellers? No. I did my own analysis of the 235-page audit performed by Integrated Financial Engineering Inc. based in Rockville
Among technology efforts being pursued by the Federal Housing Administration is the potential for borrowers to e-sign their loans before becoming insured by the agency. The implementation of new data submissions standards and development of an electronic case binder format are among additional tech efforts under way by FHA, National Mortgage News reports. The mortgage industry should expect to see more changes in the coming two to three years than have been made over the past 10, Brenda Boldridge, a program support officer for FHA told attendees of the
On April 1, fees for low-down-payment mortgages insured by the Federal Housing Administration (FHA) rose for the third time in two years. The hike in fees serves a two-fold purpose: to help shore up the FHA’s sagging mortgage insurance fund, which is dangerously low; and to reduce the government’s footprint in the mortgage market.
For the second time this year, the FHA is changing its mortgage insurance policies. Beginning in 52 days, some FHA loans will require FHA MIP for so long as the loan is active. Many more will require MIP for as many as 11 years. This is a stark change from today’s FHA policy which allows for FHA mortgage insurance cancellation after just 5 years. An FHA mortgage is a mortgage which is insured by the Federal Housing Administration (FHA), a self-supporting agency within the U.S. government. FHA-insured mortgages are comparable to mortgages you may seek from other sources,
The mortgage securities business has become a shell game. Consider the disconnect in pricing of credit guarantees between Fannie Mae and Freddie Mac, on the one hand, and the Federal Housing Administration on the other. One of the important differences in pricing between the government-sponsored enterprises and FHA is that Fannie and Freddie adjust their prices to some degree for risk while FHA largely charges fees that are flat across risk attributes. And although FHA has raised upfront and annual mortgage insurance premiums since the crisis, the
Taxpayers may have to prop up the Federal Housing Administration to the tune of almost $1 billion later this year, according to White House budget documents released Wednesday. Mortgage insurer FHA may need a $943 million credit in October from the U.S. Department of the Treasury. Analysts found that FHA’s current reserves w0uld be unable to cover projected losses over the next 30 years. There will be a final estimate later this year to see whether FHA will require assistance. Without the reverse-mortgage portfolio, there would be a surplus of more $4 billion.