FHA Extends Waiver of Anti-Flipping Regulations Through 2012
In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting Federal Housing Administration (FHA) Commissioner Carol J. Galante will extend FHA’s temporary waiver of the anti-flipping regulations. With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 […]
Two Federal Housing Programs on the Chopping Block
On Thursday, March 3, 2011, the House Financial Services Committee voted to end two Federal Housing programs. The two seemingly unmanageable programs sought to be eliminated include the FHA (Federal Housing Administration) Short Refi Program and the program initiated through the Dodd-Frank Reform Act last summer which provided a “bridge loan” for those who lost […]
Obama Administration’s White Paper Proposes Phasing Out Fannie and Freddie
The Obama administration released its “white paper” outlining the winding down and replacement of Fannie Mae and Freddie Mac. The goal of the proposals is to decrease the government’s involvement in the mortgage industry. The first proposal presented by the administration would create a government backstop under a federal reinsurance model. In the second proposal […]
Change is coming to the Home Affordable Foreclosure Alternative Program
Pursuant to the new guidelines released December 28, 2010, servicers are expected to put into place the revised guidelines on or before February 1, 2011. As a part of the updated guidelines servicers are now required to complete and send a Short Sale Agreement (SSA) to the borrower within 30 calendar days from the date […]
Obama Administration Putting Pressure on Fannie and Freddie to Agree to Principal Reductions
The Obama administration is trying to convince Fannie Mae and Freddie Mac to join a program run by the Federal Housing Administration (FHA) that allows banks to hand over mortgages if the bank and investors agree to a write-down on the principal. The administration hopes that the participation of the mortgage giants would put additional […]
FHA’s new principal reduction program
A new program issued by the Federal Housing Administration (FHA) requires lenders to reduce the principal by at least 10% for qualified borrowers. Borrowers can qualify for the FHA principal reduction program if they are current on their payments and their loan was acquired from a failed bank seized by the FDIC. Additionally, the program […]
New Mortgage Program for Unemployed
The Home Affordable Unemployment Program (UP) takes effect July 1, 2010, offering eligible unemployed borrowers an option to temporarily reduce or suspend mortgage payments for a minimum of three months. Applicants must qualify for the Home Affordable Modification Program (HAMP), currently receive unemployment benefits, and must request the option before missing three monthly payments. Homeowners, […]
Republicans Want to End Fannie and Freddie
On Wednesday, Republicans announced a plan to wind down bailed-out mortgage-financing giants, Fannie Mae and Freddie Mac. This proposal has the potential to create some political headaches for Democrats and the Obama administration which have bet heavily on the companies’ futures. Republicans submitted the measure as an amendment to the financial-regulatory bill in the Senate. […]