01
MAR
2016
stretching-Ratio-DTI

“Stre—tching” the Ratios

HUD/FHA announced a new partnership between FHA and the Department of Energy (DOE) which incorporates the use of DOE’s innovative Home Energy Score into FHA’s current Energy Efficient Homes (EEH) program, in Mortgagee Letter 2015-22, dated September 30, 2015. If you...
24
FEB
2016
ides-of-march-HUD-REO

HUD REO Appraisal Changes – Beware the Ides of March

Lenders need to be aware of policy & procedural changes are being implemented by HUD/FHA on March 14, 2016. One of these changes involves a requirement to obtain a new appraisal when processing an FHA loan transaction on a HUD Real Estate Owned (REO) property. Under current...
22
FEB
2016
HUD-Budget-2017

Some Impacts for Mortgage Lenders in HUD’s FY 2017 Budget Proposal

HUD recently announced the specific details of its proposed Fiscal Year 2017 Budget. This is part of the President’s overall Fiscal Year 2017 Budget Plan that was just submitted to Congress. In reviewing HUD’s proposed 2017 Budget, there are some items that will be of...
18
FEB
2016
USDA-Lender-agent

Some Positive Reforms in USDA’s Rural Housing Service Loan Programs

Recently, I discussed a new security role of “Lender Agent” that was created by USDA Rural Development for participating lenders. Once designated as a “Lender Agent” – a User will be authorized to establish applications, order new and re-issue existing credit reports and...
12
FEB
2016
FHA-Update-Condo-Approval-rules

Some Real Changes in FHA Condominium Project Approval Procedures

Some good news from Capitol Hill this past week came in the form of an announcement that the House approved a Bill (by a 427-0 margin) that would make substantive changes in FHA’s condominium project approval and recertification procedures. In my November 24, 2015, Blog...
09
FEB
2016
Independent-Disputer-Resolution-IDR

Appeal of the Appeal’s Appeal

Freddie Mac and Fannie Mae jointly announced the implementation of an Independent Dispute Resolution (IDR) process which is designed to help resolve alleged loan-level breaches of selling representations or warranties that remain unresolved after all other appeals have been...
05
FEB
2016
Mortgage-insurance-premiums

FHA Mortgage Insurance Premiums – Going up, down or staying the same?

HUD/FHA announced on Jan. 28th, that it will be lowering mortgage insurance rates for multifamily (5 or more units) mortgages in an effort to increase multifamily loan originations. This could result in the rehabilitation of as many as 12,000 additional units of affordable...
29
JAN
2016
fannie-mae-Home-Ready

Home Ready (or Not)!

Recently, Fannie Mae announced the implementation of its new “Home Ready” mortgage product. According to Fannie Mae, this mortgage product was designed to support homeownership opportunities among underserved populations. They now recognize the growth of extended-household living...
25
JAN
2016
Got-helc-qc

Home Equity Lenders – Got Quality Control?

Home Equity loans are becoming popular once again.  Interest rates remain relatively low, home values have been appreciating in many parts of the country, college tuition costs continue to rise and credit card debt remains high for many homeowners. This is a “perfect storm”...
22
JAN
2016
Oxymoron-Quality-Loan-Defects

“Quality Loans with some Defects” Alternatives to Repurchases being considered by the GSE’s

Both Fannie Mae and Freddie Mac reported in December that they are considering offering lenders alternatives to repurchase requests for loans that have documented defects but are still considered to be of good quality. I enjoy a good oxymoron. These are some of my favorite...