October 22, 2017

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Articles Tagged With: FHA Loan News

HUD Issues Announcement On HECM Loan Policy Changes

HUD Issues Announcement On HECM Loan Policy Changes

The Department of Housing and Urban Development has issued a mortgagee letter detailing changes to the FHA loan HECM program (also known as FHA Reverse Mortgage program) effective for all case numbers assigned on or after September 19, 2017. According to Mortgagee Letter 2017-11, the changes affect how participating lenders proceed in cases where there has been a loan default for “unpaid property charges” and the sale of property secured by an FHA HECM that has been declared due and payable. According to the FHA/HUD official site, for cases where unpaid property charges cause a HECM loan to go into default, new guidance to lenders includes the following: “If a Borrower is unable or unwilling to repay the Mortgagee for any Mortgagee funds advanced to pay property charges, the Mortgagee | more...

 
White House Announces Federal Disaster Assistance For Texas

White House Announces Federal Disaster Assistance For Texas

On Friday, August 26, 2017, the White House announced federal aid for Texas to help affected counties in the state recover from Hurricane Harvey. According to Whitehouse.gov, the President “declared that a major disaster exists in the State of Texas and ordered Federal aid to supplement State and local recovery efforts in the areas affected by Hurricane Harvey beginning on August 23, 2017, and continuing.” A complete list of affected counties named as federal disaster areas is not available at the time of this writing, and conditions may be such that more counties are listed in the coming days or weeks. But for all affected areas, the FHA and HUD have disaster relief measures that can help home owners trying to recover from the effects of the hurricane including high | more...

 
Mortgage Loan Rate Trends

Mortgage Loan Interest Rate Trends: Up And Down

In our last report we noted that mortgage loan interest rate numbers could be influenced by the substance of the most recent Fed announcement, or more specifically investor reaction to those details. Rates did try to creep lower ahead of Wednesday’s Fed event, and Wednesday morning it seemed like rates were trying to move lower still. But the Fed came and went, rates began to move higher, and according to our sources at the end of the day on Wednesday we were right back to where things were at before the pre-Fed downward movement. Which is to say that rates have been moving up and down within a certain range without any real major, breaking news-type dramatic shifts. 30-year fixed rate mortgage loan interest rate numbers are in a best | more...

 
Mortgage Loan Rate Trends

Mortgage Rate Trends: Lower Still

We have devoted more column space to mortgage rate trends than usual this week, due in part because the short-term trend is definitely about moving lower, and we’re finally watching mortgage rate numbers dip into pre-election territory. There is absolutely no way to predict how long this trend will persist, but those who were holding out hope that we might see a move back to pre-November levels are being rewarded this week. Industry professionals and market watchers are quick to point out that this move lower has a lot to do with a combination of overseas economic news and a less-than-enthusiastic reaction from investors from the first 100 days of the new administration where fiscal policy is concerned. The first 100 days ends soon, are there more surprises coming? That | more...

 
Mortgage Loan Rate Trends

Mortgage Loan Interest Rate Trends: New Lows

In our last report, we noted that mortgage loan interest rates had been on the move, losing a small amount of ground over the previous two business days. We also noted that it was too early to tell if that was becoming a trend, or if the move higher was a short-term fluctuation. At the time of this writing, mortgage rates have since plunged to lows we haven’t seen for a majority of the year. There are complex reasons why rates have suddenly moved downward. Global political headlines often play a role in the direction of mortgage rate movement, especially when those headlines have far-reaching implications. This week we’ve seen French elections, Russia and North Korea dominate headlines in ways that have investors moving their cash into safer bets, which | more...

 
Mortgage Loan Rate Trends

Mortgage Loan Interest Rate Trends: Higher

Since our last report, mortgage loan interest rates have risen slightly but overall remain within the same range as we’ve been reporting on now for several weeks. Both Friday and Monday saw rates moving higher in spite of conditions that have in the past contributed to helping rates move lower. This is not unusual, but it happens infrequently enough to raise eyebrows among those who aren’t used to watching these ups and downs. The contrarian moves in rates as of late gives market watchers reason to be lukewarm on “floating” or holding off on a mortgage loan interest rate lock with a lender in hopes that rates may go lower before the lock agreement is finally made. The moves higher aren’t enough to create the impression that we’re headed into | more...

 
Mortgage Loan Rate Trends

Mortgage Rate Trends: Moving Lower

Since our last mortgage rate report, the overall trend has been downward in the short-term. Over the past several business days we have seen rates see-saw back and forth within a certain range, but at the time of this writing, rates are lower than when we reported on them last. 30-year fixed rate mortgages are at 4.25%, best execution. That’s in the middle of the range we last reported, with 4.375% at the upper end and 4.125% at the lower end. FHA loans are finally seeing a mortgage rate range falling back into the sub-four percent range; depending on the lender FHA mortgage rate numbers are reported between 3.75% and 4.25% best execution. Remember, “best execution” refers to rates offered to extremely well-qualified borrowers with outstanding FICO scores and other | more...

 

FHA Loans With A Non-Occupying Co-Borrower

How does having a non-occupying co-borrower affect your FHA mortgage? What happens if one of the borrowers decides they want a change in their status as occupying or non-occupying? A reader asked us a question along these lines recently in the comments section: “I just purchased my home in November 2016 with my husband’s uncle as a co-borrower (not living in the property). Now he is getting a divorce and his soon-to-be ex-wife wants the househe basically just helped me qualify of put the down payment to purchase and pay the mortgage on my ownhe even signed hes rights to the title the day we signed for the property is I was told. I could put in that paper after about 6 months of having the property but now I | more...

 
Who can apply for an FHA mortgage?

Chapter 13 Bankruptcy: A Reader Question

A reader got in touch recently about issues related to Chapter 13 bankruptcy and FHA mortgage loans. “I made all payments for 6 years on my chapter 13 and they said I have to wait 2 more years to be approved when my credit score is over 730. I dont get it I paid my dues and still have to wait.” The primary confusion here is associated with the FHA loan rules in HUD 4000.1 regarding “seasoning” periods that are required in the wake of certain types of negative credit events such as a bankruptcy. The rules vary depending on the type of bankruptcy you have filed, but in the case of this reader question, let’s examine what FHA loan rules have to say about Chapter 13 bankruptcy: “A Chapter | more...

 
How much can I borrow with an FHA refinance loan?

Mortgage Markets and FHA Loans

At the beginning of 2017, Forbes.com published a housing outlook for 2017 which included predictions from experts about what could happen this year. Three months into the new year, how accurate were some of the highlights of this piece? How do current trends affect mortgage loan applicants and those looking to refinance? A quick look at current events shows that some of the observations made at Forbes.com in an article by Samantha Sharf are absolutely right and there’s no reason to expect anything different in the short to mid-term. Consider the prediction made in this piece about mortgage rates. According to the article: “By historic standards rates are still low. In 2017 experts expect movement, but differ on where for the 30-year fixed rate will land. Estimates out there range | more...