In case you haven’t heard, President Trump officially suspended the reduction in the annual FHA premium previously announced by FHA. With the stroke of a pen, Mr. Trump made one of his first official presidential acts to officially suspend the rate cut indefinitely. This action has caused quite a stir in the housing and mortgage communities. Some say it is…
It’s no secret that the major banks have moved away from FHA lending because of their perception of the risks related to the required loan certifications and lack of clarity on potential enforcement. As a result, non-bank mortgage lenders have picked up the slack. This presents some additional lending opportunities for non-bank lenders. With this increased FHA business, non-bank lenders…
On September 27th, FHA announced their new proposals to ease their process for approving both condo projects and individual units in a non-approved project. The real estate community sees this as a step in the right direction. The intent is to make more condo units available for FFHA-insured financing, thus helping to make more affordable housing available to low to…
As a friendly reminder, for all loans with the FHA case number assigned as of August 1, 2016, a lender must execute the new, improved HUD 92900-A when approving the loan (92900-A). This is the document containing the certifications made by the borrower and lender in connection with obtaining and granting an FHA-insured mortgage. This is the culprit that has…
Based on FHA’s most recent Lender Insight newsletter (Insights), FHA lenders are not doing so well in managing their initial gross defects. According to the FHA’s post-endorsement technical reviews, over the past 2 years, the initial unacceptable defect rate is averaging just south of 50%. That means that about half of the loans delivered for FHA insurance have substantial defects.…
While Britain’s exit from the European Union is all the talk, the exit of the big banks from FHA lending offers an increased opportunity for Independent Mortgage Lenders and smaller Community Banks. “Banxit” has left the FHA-insured mortgage financing mainly in the hands of the independents. With the turmoil over the UK’s move, it seems that mortgage rates in the…
