The FHA Training Manual used for mortgage loan officer training by industry leaders such as National Association of Mortgage Brokers and hundreds of other companies! This FHA Training Package includes a 380+ page manual, an FHA Refinance Guide, an interactive CD and Free Updates. Read more!
Effective for FHA loans for which the case number is assigned on or after October 4, 2010, FHA will lower its upfront mortgage insurance premium (except for HECMs) simultaneously with an increase to the annual premium which is collected on a monthly basis. This policy change will decrease upfront premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.
On August 12, 2010 from 4:00PM to 5:00PM EST, FHA will have a webinar to provide an overview of the recently issued mortgagee letter announcing FHA’s Short Refinance Option. After the overview, FHA staff will field questions from callers.
FHA Mortgagee Letter 2010-23 – FHA Refinance of Borrowers in Negative Equity Positions:
STATEMENT BY DEPUTY ASSISTANT SECRETARY VICKI BOTT
Tuesday, August 10, 2010
Last week, FHA Commissioner David H. Stevens announced plans for implementing FHA’s new mortgage insurance premium structure. As we work to publish a Mortgagee Letter, it is our intention to announce that based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective October 4, 2010.
The passage of HR 5981 has given FHA the authority to raise annual mortgage insurance rates on FHA loans. The FHA annual insurance premium is the amount charged yearly and divided evenly between that year’s mortgage payments. HUD asked for this authority in order to facilitate lowering the FHA Upfront Mortgage Insurance Premiums which are added to the loan amount at the time of closing.
This morning, FHA issued the news release below. FHA is very serious about improving the quality of the program. Keep in mind though that many of these “actions” were taken against lenders who had already gone out of business due to the economy. Therefore, they simply did not renew their FHA license.
FHA Commissioner David Stevens issued a warning yesterday to FHA lenders about underwriting and quality control standards. Most of what he discusses are issues I’ve often highlighted on this website.
HUD is seeking public comment on three proposals to help FHA control risk, and stem the losses from claims against the FHA mortgage insurance fund.
The first proposal is that FHA require a minimum credit score of 580 in order to eligible for maximum financing, and that no scores lower than 500 be accepted at all. Borrowers with credit scores between 500 and 579 would be required to make a 10% minimum down payment.
FHA’s Policy Call on the Implementation of the Final Rule to Strengthen Risk Management: Implementation of Final Rule FR 5356-F-02, “Federal Housing Administration: Continuation of FHA Reform—Strengthening Risk Management through Responsible FHA-Approved Lenders
FHA recently issued ML 2010-20 which provides an overview of key provisions of HUD’s final rule referenced above, and provides guidance to mortgagees on HUD’s implementation of this final rule. This rule increased the net worth requirements for FHA-approved mortgagees, eliminated FHA approval of loan correspondents, codified requirements of the Helping Families Save Their Homes Act of 2009 (Public Law 111-22), and made minor modifications to other aspects of FHA’s regulations governing lender activities. After a brief overview of the new policy decisions, FHA staff will field questions from callers.
