twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.

The FHA Times

Recent FHA lending activity

January 13, 2009

By staff

Recently passed federal legislation has resulted in program changes at the Federal Housing Administration -- including revised ratios for refinances, enhanced alternatives on junior liens and required certification for FHA appraisers. Among other government lending activity is an FHA Webinar for community banks, testimony by mortgage bankers that FHA approval for mortgage brokers should be more rigid and a service that claims to enable non-FHA brokers to originate FHA loans.

Mortgagee Letter 2009-03 issued by the U.S. Department of Housing and Urban Development last week outlined requirements of the HOPE for Homeowners Program authorized under H.R. 3221, the Housing and Economic Recovery Act of 2008. The program, which has an annual 1.5 percent mortgage insurance premium, is available for loans closed prior to March 1, 2008, and includes a government interest in the property.

HUD noted that qualifying borrowers must have had minimum debt-to-income ratios of 31 percent on their old loans as of March 1, 2008, including taxes and insurance. However, DTIs for adjustable-rate mortgage borrowers can also be calculated based on the monthly payment and income as of the application date.

On the new H4H loan, front-end ratios are capped at 38 percent and back-end ratios are limited to 50 percent. Loan terms up to 40 years should be exactly 30 or 40 years if the loans will be included in Ginnie Mae mortgage-backed securities.

The maximum H4H loan-to-value is 90 percent, though 96.5 percent is available if the front-end DTI is no more than 31 percent under the new loan and the back-end ratio doesn't exceed 43 percent. Second liens of more than $2,500 can be satisfied with an up-front payment from the loan proceeds or an equity interest in the property.

Mortgagee Letter 2008-40 issued last month indicated that the recovery act eliminated state-specific maximum LTVs and capped most refinances at 97.75 percent LTV as of Jan. 1. The maximum LTV, including the up-front M.I.P., is 100 percent.

HUD noted in Mortgagee Letter 2008-41 issued in December that the FHASecure program has ended for loans assigned a case number after Dec. 31, 2008.

Another recent Mortgage Letter, number 2008-39, indicated the recovery act amended the National Housing Act to require that FHA appraisers are state-certified and adequately educated. HUD has already been rejecting applications from appraisers who are not state-certified and will require all appraisals on FHA loans as of Oct. 1, 2009, to be performed only by certified appraisers.

Mortgage Bankers Association President and Chief Executive Officer John A. Courson testified Friday before the House Financial Services Committee that FHA market share has risen from 3 percent 18 months ago to the current level of 20 percent. But he warned that bad players could jeopardize borrowers and damage the industry's reputation.

Courson called for an increase in the agency's staffing and technology resources. He also recommended a bonding requirement for mortgage brokers as well as increased net worth requirements.

Wolters Kluwer Financial Services announced yesterday an FHA Webinar for members of Independent Community Bankers of America. The 90-minute event starts at 11 a.m. Eastern Time tomorrow and costs $199.

The Mortgage Wave is marketing services that, it claims, enables mortgage brokers without FHA approval to close FHA loans. Brokers reportedly keep all of the yield-spread premium and commissions less a $995 flat fee.

"I am working with a few lenders to help brokers without FHA," the marketing message from The Mortgage Wave said. "We are one of the only companies offering this option."

Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.

Mortgage Broker News | Originator Newsletter
Stories about mortgage brokering and broker programs. Profiles of successful mortgage brokers. Articles about mortgage brokers who excel at other activities. Broker lawsuits and criminal broker activity.

Refinance News | Refinance Share Statistics
News about refinancing programs, pricing and production. Stories about the H o m e
Affordable Refinance Program, H A R P 2.0 and other Making Home Affordable coverage.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders