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

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com 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 MortgageDaily.com.

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

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

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

Press Releases
Reports and announcements from MortgageDaily.com.

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.

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.



New FHA Premiums Slated for Summer

Upfront subprime premiums will rise to 2.25% for subprime borrowers

May 9, 2008

By MortgageDaily.com staff


Risk-based premiums on subprime loans insured by the Federal Housing Administration will be implemented within two months.

The U.S. Department of Housing and Urban Development announced Thursday that the Bush administration has issued final guidance on FHA mortgage insurance premiums.

Borrowers who are in subprime loans they cannot afford can refinance through FHASecure, an initiative unveiled by Bush last August. The program was expected to help around 240,000 subprime borrowers who have missed up to three payments during the past 12 months.

Thursday's press release said FHA is on pace to refinance approximately 500,000 mortgages into its affordable mortgage product by the end of this year.

The statement noted risk-based premiums will ensure taxpayers do not assume the cost of the FHA expansion. Implementation of the new pricing is scheduled for July 14.

Last month, FHA Commissioner Brian D. Montgomery testified the rollout of risk-based premiums "will ensure the integrity of the FHA insurance fund over the long-term, protect the taxpayer and guarantee that FHA will be around to help struggling homeowners in the future."

"With a flexible premium structure, FHA can fulfill its mission of assisting families who do not have access to prime-rate financing," HUD Deputy Secretary Roy A. Bernardi said in the announcement. "Fair pricing will allow FHA to reach more troubled homeowners without placing excessive risk on its insurance fund."

Current FHA premiums cost 1.5 percent upfront and 0.5 percent annually for all borrowers. The new pricing plan has upfront premiums that range from 1.25 percent to 2.25 percent. FHA, which has reportedly insured more than 34 million mortgages since 1934, can charge as much as 0.55 percent for the annual premium.

"By charging different premiums, FHA will operate like most other insurance companies," HUD said. "Borrowers refinancing into FHA from the subprime market are better off, even with slightly higher mortgage insurance premiums, because FHA insurance gives them access to substantially lower interest rates, and lowers their overall mortgage costs."


Related:

FHA Aid Expanded
The Federal Housing commissioner testified today that expanded guidelines at the Federal Housing Administration will benefit about 500,000 subprime borrowers.

President Outlines Mortgage Plan
President Bush has proposed a plan to help delinquent borrowers avoid foreclosure.

Help for delinquent, foreclosed borrowers


Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.


Mortgage Insurance News

Mortgage Rate News | Mortgage Market Index | ARM indices | ARM Statistics
Average fixed and ARM rates. Rate forecasts. Quotes on ARM indexes including COFI, MTA, LIBOR & Treasuries. Rate reset studies and reports. Mortgage rate litigation.



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

MBS

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