FHA Training, Guideline Updates and Advice
August 28th, 2008 — Industry Information
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On FHA Mortgage Guide, syndicated columnist Peter Miller points out today that the number of FHA mortgage endorsements is headed down when comparing the first two weeks of July with the first two weeks of August.
“There were 77,608 FHA endorsements during the first two weeks of August — that’s significantly less than the 82,079 loans that were insured during the last two weeks of July.”
July 23rd, 2008 — Down Payment Assistance, FHA Updates, FHA guidelines, HUD Regulations, Industry Information
As I spend time reading all the websites that seem to rejoice over reciting every detail of the downfall of the mortgage industry, I see many comments bringing attention to HUD’s efforts to get rid of seller paid down payment assistance. I usually find that these comments are being made by those with no access to any real information other than the misleading and often inaccurate numbers issued by the political appointees at HUD.
I found it refreshing to read a July 23, 2008 opinion column on the Atlanta Journal-Constitution website written by Robert Motley, the CEO of Pine State Mortgage in Sandy Springs, GA… Continue reading →
June 24th, 2008 — Down Payment Assistance, FHA Updates, How FHA Works, Industry Information
I’m often amazed when supposed experts issue opinions on subjects that I actually know something about. It is frightening how often the so-called experts are completely wrong. Here is a recent example.
I usually try to limit political comments in this blog since it is primarily intended to be a training and guideline update source designed to help loan officers originate and close FHA loans. However a June 21, 2008 editorial in the Wall Street Journal entitled “The FHA Time Bomb” has such a smörgåsbord of misinformation and misdirection that I feel compelled to comment.
June 21st, 2008 — FHA Updates, FHA guidelines, HUD Regulations, Industry Information, Originating FHA Loans, RESPA
On Oct. 30, 2007, I published a post entitled “FHA Mortgage Co-brokering: Watch Out!” in which I warned of potential violations of FHA’s policy regarding payments to non-approved mortgage brokers. HUD made an announcement that day outlining their policy, but it was not issued in the form of an official Mortgagee Letter and it did not clearly identify that the policy applied to any fee paid by the borrower and not just payments made through yield spread premium.
June 13th, 2008 — FHA guidelines, HUD Regulations, Industry Information
One of the most touching experiences loan officers go through when we conduct marketing campaigns seeking FHA mortgage prospects are the borrowers who call us wanting to buy a home for their family but they just have too much bad credit to overcome in order to qualify for even an FHA loan. Often they have a bankruptcy.
June 11th, 2008 — Down Payment Assistance, FHA Updates, FHA guidelines, HUD Regulations, Industry Information
HUD is once again about to propose the rule banning down payment assistance programs and open it up for a 60 day comment period. You can find more about that at the link above.
HUD continues to use higher default rates associated with loans using DPA as their rationale for killing off the non-profit down payment assistance programs. However, you can’t use HUD’s raw statistics to say DPA causes a higher foreclosure rate, only to show that DPA is associated with a higher foreclosure rate. The reason is that these raw figures aren’t adjusted to account for other factors such as credit, debt ratio, time on the job, local economic conditions etc.
May 12th, 2008 — HUD Regulations, Industry Information, Originating FHA Loans
This may sound harsh, but divorce is not a good excuse for bad credit.
Considering the number of credit explanation letters I see in FHA loan submissions which prominently promote divorce as the explanation for borrowers’ credit foul-ups, it appears clear to me that many loan officers are not aware of this fact. As a result, many loan submission files end up unnecessarily in the turn-down stack.
May 2nd, 2008 — FHA Updates, FHA guidelines, HUD Regulations, Industry Information, Originating FHA Loans
For ages, your borrower’s nontraditional credit has been acceptable to use to qualify for FHA loans. In the past, though, HUD wasn’t very specific on exactly what they expected to see when alternative credit was used. Were letters from creditors acceptable proof or did it need to be added to a nontraditional credit report? What types of accounts are acceptable?
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