Mortgage loan application volume bounced back from last week’s low, rising 0.3%, according to the Mortgage Bankers Association’s (MBA) weekly survey. Purchase mortgage activity grew 8%, driving the increase. Last week’s numbers hit their lowest point since Mid-July, largely due to a 3% drop in refinancing. Refi dropped another 3% this week, but purchase mortgage applications made up for it, reaching their highest level since April. “Compared to the same week last September, which was right in the middle of a significant upswing in home purchases, applications were down 11%– the smallest year-over-year decline in 14 weeks,” said Joel Kan, associate vice president of economic and industry forecasting. The average loan size for a purchase application also rose, to $396,800.…
Housing and Urban Development Secretary Marcia L. Fudge announced that mortgage insurance on Federal Housing Administration loans will remain the same for the foreseeable future. “Given the current FHA delinquency crisis and our duty to manage risks and the overall health of the fund, we have no near-term plans to change FHA’s mortgage insurance premium pricing,” HUD Secretary Marcia L. Fudge said. “We will continue to rigorously evaluate our strategy and work transparently with Congress. Our number one priority is helping families keep their homes and remain safe as we work toward an equitable recovery.” What is FHA mortgage insurance? Bankrate explains: All FHA loans require the borrower to pay two mortgage insurance premiums: Upfront mortgage insurance premium: 1.75 percent of the loan amount,…
The Biden Administration announced Tuesday that it will extend the Federal Housing Administration’s foreclosure and eviction moratoriums into the summer, while also extending mortgage forbearance options. The ban on foreclosure and evictions will be in place through June 30, the Department of Housing and Urban Development announced. The Office of Public and Indian Housing also is planning to announce similar relief for Native American and Native Hawaiian homeowners. “As President Biden has made clear, it is urgent that we help homeowners throughout the nation who are struggling financially from this unprecedented national emergency,” Acting HUD Secretary Matthew Ammon said. “The steps we are taking today will provide both immediate relief to those in desperate need of assistance and help more…
By Adam Luehrs For millions of people, owning their own home is a crucial part of the American Dream. Not only does owning a home allow people to build wealth through home equity, but there are also tax breaks available for home buyers. For generations, immigrants who may have entered the United States illegally have been prevented from buying property. Primarily because they don’t have Social Security numbers, immigrants have struggled to gain access to the financial resources they need to make home ownership a reality. However, a change made on January 19, 2021 by the Trump administration has opened the door for DACA recipients, often referred to as “Dreamers,” to get Federal Housing Administration loans to help in their…
The Federal Housing Administration on Tuesday proposed allowing a private flood insurance option instead of insurance through the National Flood Insurance Program when flood insurance is required by FHA. The rule would allow lenders to accept private flood insurance policies for single family insured loans for homes located in Federal Emergency Management Agency-designated Special Flood Hazard Areas. This would be consistent with similar provisions in use by other industry participants. “Our proposal would expand the options for obtaining flood insurance, rather than continuing to lock in borrowers to one federal option without any ability to comparison shop,” Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade said. “We are also proposing important safeguards that will help protect borrowers, so…
The U.S. Senate on Tuesday confirmed Dana Wade as the commissioner of the Federal Housing Agency by a 57-40 vote. All votes against the nomination came from Democrats, with Democratic Sens. Doug Jones (Arkansas), Joe Manchin (West Virginia), Chris Murphy (Connecticut), and Kyrsten Sinema (Arizona) joining Republicans to vote to confirm. “I’m extremely grateful for this opportunity to hit the ground running during this critical time for our nation’s housing markets,” Commissioner Wade said. Wade previously served as Acting Federal Housing Commissioner and Assistant Secretary for Housing from July 2017 to June 2018, where she oversaw over 2,400 employees and implemented enhanced risk management and monitoring of FHA’s $1.3 trillion portfolio. Wade also served as a Program Associate Director for…
The watchdog at the U.S. Department of Housing and Urban Development is accusing mortgage lenders of providing “incomplete, inconsistent, dated and unclear guidance” to borrowers seeking relief from mortgage payments during the coronavirus pandemic. Brian T. Pattison, the assistant Inspector General at HUD, reviewed the websites for 30 lenders who have loans insured by the Federal Housing Administration to determine if they were effectively communicating about forbearance opportunities available to borrowers. Pattison concluded, “Lack of clear and consistent guidance from FHA servicers and enforcement by FHA of that guidance allows servicers to leave struggling homeowners unable to make informed decisions about paying their mortgages and relief that may be available to them during this pandemic.” Pattison’s report did not name…
