Mortgage Underwriting News for February 2012

Reduction in Seller Contribution towards Closing

Friday, February 24, 2012 - 8:35pm

We all knew it was coming and it looks like it is here and that being the announcement in the Federal Register that HUD intends to reduce the amount a seller can contribute towards borrowers closing costs from the current 6% to 3% as indicated previously in a Federal Register publication in July, 2010. When it was first announced, I like many other industry professionals was concerned as to the...

Categories: Bonnie Wilt-Hild, Mortgage Underwriting

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Record Low FHA Rates Benefit First Time Home Buyers

Friday, February 24, 2012 - 8:28pm

If you’re a prospective first time home buyer, now is an excellent time to take advantage of the low rates that are being offered on FHA loans. Buying a new home can be a daunting undertaking, especially if you’ve never purchased a home before. The need for a sizable down payment can keep many people from even thinking about becoming a homeowner. The good news is that if you have a good credit...

Categories: FHA Weekly Update, FHA News Editor

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FHA Makes Strides on Speeding Up Its Tax Credit Process

Friday, February 24, 2012 - 8:08pm

Marie Head has been at the helm of the FHA’s multifamily division since November, and she hasn’t even stopped to decorate her office walls. In the three months since Head replaced Carol Galante as deputy assistant secretary of multifamily housing programs, she has already helped streamline the FHA’s delivery system through new regulations, while issuing new parameters around large loans. Turns...

Categories: FHA Weekly Update, FHA News Editor

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Gift Funds for Conventional Lending

Friday, February 17, 2012 - 8:29pm

Confusion is common when it comes to gift documentation requirements between conventional and government loan types. Below I’ve summarized donor, gift letter and documentation requirements for each conventional lending. Be sure, however, to check for lender overlays and additional restrictions and requirements as lenders may apply their own requirements and restrictions beyond those set forth by...

Categories: Loan Processing, Stacey Sprain

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Let you voice be heard

Friday, February 17, 2012 - 8:28pm

The Consumer Finance Protection Bureau (CFPB) has been busy. The Bureau was created by congress and officially started business in July 2011. Need FHA Training? CLICK HERE: http://www.FHA-Classes.org They have set up a very user friendly website with spots for feedback from consumers and industry professionals. In relation to the mortgage industry, the CFPB has proposed streamlining...

Categories: FHA-VA Loans, Theresa Furzland

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Obtaining an FHA Streamline Refinance Is Now Easier

Friday, February 17, 2012 - 8:26pm

There is no doubt that one of FHA’s most attractive benefits is the FHA Streamline Refinance. These were designed by FHA to be easy, fast and without any tedious underwriting that would threaten or delay the mortgage from closing. Unfortunately, in recent times, this was not the case and many borrowers were not able to obtain the FHA streamline refinance. Unfortunately, many lenders did not want...

Categories: FHA Weekly Update, FHA News Editor

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FHA 2012 expects to witness increased participation

Thursday, February 9, 2012 - 8:33pm

In 2012, Asia’s premiere food and hospitality exhibition, Food&HotelAsia (FHA), scheduled to be held at Singapore Expo between April 17-20, expects to witness an increase in participation as compared to its last exhibition in 2010. According to Stephen Tan, Chief Executive, Singapore Exhibition Services Pvt Ltd, about 2,600 exhibitors of the food and hospitality industry from 60 countries of...

Categories: FHA Weekly Update, FHA News Editor

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FHA Mortgage Rates Approaching All-Time Lows

Thursday, February 9, 2012 - 8:31pm

Last week Freddie Mac saw mortgage rates hit record lows, according to their Primary Mortgage Market Survey. Although rates bounced up a little toward the end of the week on positive employment data, rates are still near historic levels. If you have been renting for a long time, now may be a great time to make the move to homeownership, locking in these historically low rates for years to come....

Categories: FHA Weekly Update, FHA News Editor

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Important Info for Lenders re: IRS Transcripts and 2012 Concerns for Identity Theft

Friday, February 3, 2012 - 5:21pm

Though all of today’s technological improvements allow lenders a better opportunity to validate loan application information for loan applicants, such advances have also increased the risk for identity theft with so much personal data moving through so many extra portals and moving through so many extra pairs of hands. Let’s think about it. We take loan applications that contain social security...

Categories: Loan Processing, Stacey Sprain

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Obama's Mortgage Refi Plan to Go Through FHA

Friday, February 3, 2012 - 5:19pm

After announcing during his State of the Union address a new government refinance program for, "responsible" but "underwater" borrowers with privately held mortgages, President Obama is expected to detail the plan today. It will go through the government mortgage insurer, the Federal Housing Administration (FHA) and could cost between $5 billion and $10 billion dollars, according to senior...

Categories: FHA Weekly Update, FHA News Editor

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