Articles in Category: HUD Regulations

March 26, 2020

Mortgage Industry Seeks Federal Relief For Borrowers

The coronavirus pandemic created financial chaos across the globe; America is on the verge of a massive financial bailout for consumers and industry to the tune of $2 trillion or more. States, lenders, and the federal government all have a keen interest in helping homeowners avoid financial crises, loan default, and foreclosure. And now the mortgage industry has rallied to petition the White House for funds to assist homeowners. On March 24, 2020, HousingWire.com ran a press release discussing a letter sent to the White House asking for mortgage relief for borrowers including delayed payments and interest. The proposal includes the following benefits: A 90-day delayed payment option for mortgage payments; A proposed one-year loan forbearance period; Payment forbearance protections such as no negative credit reporting or collections; Introducing reduced | more...

March 20, 2020

How To Avoid Foreclosure During The Coronavirus

By Joe Wallace

Are you afraid of losing your home due to diminished income or a lack of income related to closures, furloughs, and layoffs due to coronavirus prevention? The global pandemic caused by the coronavirus has created major financial problems and governments worldwide struggle to control the damage. Mortgage rates have fluctuated wildly between incredible lows and one-year highs, the Fed has made emergency interest rate cuts, and hundreds of companies have been forced to endure waves of closures or reduced hours. Affording your mortgage payment in times like these is difficult; it’s easy to fall behind on your financial obligations. Do you know what to do if you are in danger of being late or missing a mortgage payment on your FHA home loan? Act Now To Avoid More Financial Damage | more...

March 5, 2020

HUD Announces Settlement In California Fair Housing Sexual Harassment Case

By Joe Wallace

Some renters and house hunters are not aware that sexual harassment from someone at any stage of the housing process can be considered a violation of federal law. Did you know that the Fair Housing Act forbids landlords and others involved in the housing industry from sexually harassing those in search of housing (bought or rented)? A recent settlement announced by the Department of Housing and Urban Development highlights this issue. According to HUD, the agency recently approved a conciliation agreement, “requiring Ronoel Romero, Blanca Romero, and Mario Prudencio, the owners and manager of a Bakersfield, California, apartment complex, to pay $14,500 to several female residents”. The required payment is part of the settlement. Fair Housing Act laws forbid housing providers from sexually harassing tenants. The prohibition includes “creating a | more...

HUD Begins Foreclosure Relief For FHA Borrowers Affected By The Coronavirus Outbreak

March 2, 2020

HUD Announces Settlement In California Fair Housing Discrimination Case

By Bruce Reichstein

The Department of Housing and Urban Development (HUD) has announced a conciliation agreement in a California Fair Housing complaint alleging housing discrimination against those with children. Oberhauser Trust and its leasing agent, First Core Group, Inc. (doing business as Keller Williams Realty, in Glendale, California) were named in a complaint alleging denial of housing for a father of two; according to the HUD official site, this case was brought to the agency’s attention after the father was denied housing. According to a HUD press release, “…a father of two and his father-in-law filed a complaint alleging that the father was denied the opportunity to rent a condominium because he has two young daughters who would be living with him part-time.” The complaint alleges that an application to rent a condo | more...

February 3, 2020

HUD Updates Manufactured Housing Policy

By Bruce Reichstein

The Department of Housing and Urban Development announced a final rule on formaldehyde emissions standards for manufactured homes. These updates clarify issues related to compliance with The Toxic Substances Control Act (TSCA). HUD officials on record recently about the American affordable housing situation, label it a crisis and acknowledging that the “affordable housing crisis can’t be solved by one measure alone” though the issue of conforming with other federal guidelines addressing toxic substances is an important one. HUD updates in policy include revisiting the rules “for the installation of carbon monoxide alarms or detectors; and additional provisions for homes designed for structures attached at the site, including garages and carports” and the HUD final rule on formaldehyde emissions for manufactured homes “aligns HUD’s regulations with other federal guidelines”. HUD’s Office | more...

January 30, 2020

Save Money! The Benefits Of Housing Counseling Before You Start House Hunting

By Joe Wallace

Saving money is usually done to prepare for a home loan, but did you know there is a simple trick to saving money on mortgage expenses? It basically involves being a more informed borrower so you don’t mistakenly choose options that cost you more unnecessarily. Getting the right home loan for your needs can help you maximize your real estate dollar, but you’d be surprised at how many people don’t know the options they have where home loans are concerned. A Freddie Mac report indicates that housing counseling and/or good financial education is a key benefit when you start the journey toward buying real estate. Knowing which loans are best for your needs and which ones to avoid is key. The Freddie Mac report, a “Generation Z Study”, concludes that | more...

December 31, 2019

FHA Home Loan Pre-Approval And Mortgage Loan Approval

By Bruce Reichstein

We encourage potential FHA borrowers to get pre-approved for a home loan before house hunting. If you are new to the home loan process, you might not be sure what the difference is between FHA loan approval and getting pre-approved for an FHA mortgage. What is that difference? Getting through the initial pre-approval application does not mean you’ve been fully approved for the mortgage. But it IS an important tool for soon-to-be homeowners. Home loan pre-approval is a tool for both borrower and lender to determine if you’re ready to buy based on your income, debt to income ratio levels, the amount of down payment you have saved, etc. Think of pre-approval as the start of the loan process, but it is not a guarantee that you have an FHA | more...

FHA Cash-Out Refinance Loans: Common Questions

December 30, 2019

Where To Find An FHA Home Loan

By Joe Wallace

Where do you get an FHA home loan? The simplest answer is that you get one from a participating FHA lender. Not all banks or financial institutions support FHA home loans, and those that choose to do so must be vetted and approved by the government first. FHA Loans Are Offered By Participating Lenders As mentioned above, not all lenders participate in the FHA loan program–but did you know some are not permitted to participate, and some may not be certified by the FHA yet? Your search for a lender may seem daunting, but you can be matched with a participating lender online and do the initial loan screening online, too. You’ll need a variety of information including your estimated budget for the purchase, the desired term of the loan | more...

November 21, 2019

Types Of Homes You Can Buy Or Build With An FHA Mortgage

By Joe Wallace

What types of home can you purchase or build with an FHA mortgage? For the purposes of this article, we are talking about the status of the property rather than the property type. It’s true that FHA loans are available for condo units, mobile homes, and manufactured homes, and you can also use an FHA One-Time Close construction loan to build a home from the ground up on your own land. You can use an FHA mortgage to buy or build a single-unit home or you can purchase a property with as many as four living units. But FHA home loans also take into account the status of the property as an existing construction home, new construction, etc. The list of property types includes: Proposed Construction where no concrete or | more...

FHA Announces Modified Appraisal Rules During Coronavirus Outbreak

November 19, 2019

HUD Announces Fair Housing Act Violation Settlement With Oglethorpe Square Apartments, GA and Gene B. Glick Company, Inc.

By Joe Wallace

The Department of Housing and Urban Development has announced a settlement in a housing discrimination case involving Oglethorpe Square Apartments of Savannah, Georgia, and Gene B. Glick Company, Inc., of Indianapolis, Indiana. Housing discrimination creates unfair conditions for those who need to rent or buy a home and thanks to the Fair Housing Act there is recourse for those who experience discrimination at any stage of the housing process (see below for information on how to report housing discrimination). Many times, the only people who have the power to stop further violations of federal law are the victims of the discrimination; without reporting the illegal activity, it can go on uncontested for a long time. It’s hard to believe that in the 21st century we must still read about the | more...