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.

FHA Guidelines Tightening

DTIs, LTVs and credit scores impacted

Jan. 30, 2013

By Mortgage Daily staff

As the Federal Housing Administration works to improve the health of its Mutual Mortgage Insurance Fund, several changes are being made to FHA underwriting guidelines. Loans with credit scores less than 620 and jumbo mortgages are impacted, as are advertisements to borrowers with prior foreclosures.

FHA's annual report to Congress indicated that its capital reserve ratio had fallen to a negative 1.44 percent with a negative economic value of $16.3 billion.

Carol J. Galante, who was confirmed as Federal Housing Commissioner in December, reassured Sen. Bob Corker (R-Tenn.) in a letter just ahead of her confirmation that FHA was taking steps to bolster capital. Among the steps were changes to credit score requirements, maximum debt-to-income ratios and loan-to-value ratios.

Several steps highlighted Wednesday by FHA are expected to be formally announced in the coming days.

Applications on borrowers whose credit scores aren't at least 620 and DTI ratios are higher than 43 percent will require manual underwriting. Lenders will need to document compensating factors.

On loans for more than $625,500, down payments are likely to change. FHA is publishing a Federal Register Notice in the next several days that will propose to increase down payments on jumbo loans to 5.0 percent from 3.5 percent.

While FHA requires that at least three years has elapsed since a foreclosure and good credit has been re-established before the borrower's loan can be FHA-insured -- some lenders are accused of "inappropriately advertising and soliciting borrowers with the false pretense that they can somehow 'automatically' qualify for an FHA-insured mortgage three years after their foreclosure."

Enforcement efforts are escalating against FHA mortgagees that aggressively market to borrowers with previous foreclosures. FHA said it will also work with other federal agencies to address such false advertising by non-FHA-approved entities.

"These are essential and appropriate measures to manage and protect FHA's single-family insurance programs," Galante said in today's statement. "In addition to protecting the MMI Fund, these changes will encourage the return of private capital to the housing market, and make sure FHA remains a vital source of affordable and sustainable mortgage financing for future generations of American homebuyers."

next story

back to current headlines

Credit News | Bankruptcy Statistics | Credit Score Statistics
Credit scores, bureaus & technology. Bankruptcty activity. Credit-related lawsuits, announcements and coverage of F a i r Isaac, E q u i f a x, E x p e r i a n, F I C O, V a n t a g e Score & T r a n s Union.

Jumbo Mortgage News

Mortgage Advertising News | Mortgage Advertising
Reach mortgage executives, mortgage brokers and other people in mortgage lending.
read more | media kit | purchase ad online | ad specials | e-mail | 214.521.1300

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