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…
