The Real Deal New York

Posts Tagged ‘FHA’

  • Lexus

    Bruce McClary and 2016 Lexus GS

    Could that shiny new car you just financed with a big dealer loan or lease put a damper on your ability to refinance your mortgage or move up to a different house? Could your growing debt load — for autos, student loans and credit cards — make it tougher to come up with all the monthly payments you owe? [more]

  • credit-score

    (Credit: Shutterstock)

    If you saw the White House announcement of lower insurance payments on Federal Housing Administration home mortgages last week, you might have wondered: Does this matter to me as a potential home buyer or refinancer? Who specifically will benefit from the decrease in fees?

    The Obama administration estimates that by lowering FHA’s annual mortgage insurance premiums by half a percentage point, as many as 250,000 new buyers will be able to purchase a house. That’s great news and overdue. FHA almost priced itself out of competition with giant investors Fannie Mae and Freddie Mac by raising its premiums several times in recent years. FHA made itself too expensive and its market share has plunged. [more]

  • fha

    Hundreds of thousands of home sellers have had their pockets picked at closings during the last decade — they’ve been charged interest on their mortgages after their principal debts had been fully paid off.

    This practice, endorsed by a federal agency, cost consumers staggering amounts of money, with estimates ranging into the hundreds of millions of dollars a year during periods when mortgage rates were high. [more]

  • small-banksFollowing series of mortgage-related settlements with too-big-to-fail banks, some less substantial lenders may soon find they are not too small to scrutinize. [more]

  • Buildings with dangerously few sales

    December 09, 2013 10:30AM
    060-061 Co-ops se FINAL.indd

    Click to enlarge

    From the December issue: Owning a co-op or condominium unit sometimes carries a caveat: You might not be able to sell it. A building sponsor’s refusal to sell units can make it difficult, or even impossible, for residents to unload — or even refinance — their homes at market rates. [more]

  • For short-sellers, some good news

    September 06, 2013 01:30PM

    Policy changes by two of the biggest players in the mortgage market could open doors to home purchases this fall by thousands of people who were hard hit by the housing bust and who thought they’d have to wait for years before owning again. [more]

  • FHA interest rule under fire

    June 07, 2013 01:30PM

    Pressured by consumer protection regulators, the Federal Housing Administration is expected to end one of its most controversial practices: charging borrowers interest on their home mortgages for weeks after they’ve paid off the entire principal balance. [more]

  • The Federal Housing Administration’s projected losses over 30 years could hit $115 billion, according to a Congressional committee’s documents reported by the Wall Street Journal. [more]

  • Who says lenders need to charge you a cash down payment when you take out a mortgage in this era of hyper-strict underwriting? Just about everybody. But hold on. Two prominent federally chartered credit unions beg to differ with this consensus opinion. [more]

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  • FHA fees pack a bite

    March 13, 2013 04:30PM

    From the March issue: For homebuyers hoping to use minimal cash by getting an FHA-insured mortgage, here’s some sobering news: Thanks to an ongoing series of fee increases and underwriting tweaks — the most recent of which were announced Jan. 31 — FHA is getting steadily more expensive. FHA is the Federal Housing Administration, the largest source of low down-payment mortgage money in the country. Its minimum down is just 3.5 percent, compared with anywhere from 5 to 20 [more]

  • A federally backed lending program may help buyers tap into run-down homes for a quick return on investment, the New York Times reported. The Federal Housing Administration’s 203(k) program allows buyers to incorporate the cost of necessary repairs into their mortgage, on both single-family homes and multifamily homes with up to four units. The loan—which requires a low down-payment of 3.5 percent– covers purchase and repair costs and is determined using the property’s post-restoration value. Originations of 203(k) loans have increased to more than 25,000 in 2012, up from 3,400 in 2007. This opens the door for investors to quickly turn around a home for a profit, experts say. … [more]

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  • Senate confirms Galante as FHA head

    December 31, 2012 12:00PM

    Carol Galante

    Despite the Federal Housing Administration’s growing losses stemming from troubled loans and talk of a taxpayer bailout, the U.S. Senate confirmed Sunday that Carol Galante would continue to be in charge of the agency. Galante, who had been running the FHA in an acting capacity since July 2011, was confirmed as an assistant secretary of the Department of Housing and Urban Development, in a 69-24 Senate vote. The FHA backs a total of $1.1 trillion in U.S. home mortgages. Last month, due to troubled loans issued during the housing market downturn, it reported a projected deficit of $16.3 billion. … [more]

  • Federal legislation giving the Federal Housing Administration increased power to recoup losses on bad loans is not likely to pass in the Senate by the end of the year because of Republican opposition, according to the Wall Street Journal. The bill would give the FHA the power to force lenders to cover the cost of a defaulting loan, if the agency discovers a serious violation of federal lending standards, raising much needed cash. The bill “is a necessary and responsible step to protect taxpayers given the short amount of time left in the legislative session,” Sen. Tim Johnson, the Senate Banking Committee’s chairman, wrote in a letter last week. … [more]

  • With the Federal Housing Administration losing ever more money, the agency announced that it would tighten mortgage standards for certain homeowners and scale back the scope of its reverse-mortgage program for seniors, the Wall Street Journal reported. The changes, effective Jan. 31, will include the suspension of a popular reverse-mortgage option that allows Americans 62 or older to take cash out of their homes and receive a large, upfront payment. Carol Galante, the FHA’s acting commissioner, called the move “an immediate stopgap measure.” … [more]

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  • Rehabbers and real estate investors rejoice: You’ll still be able to sell houses to first-time buyers using low-down payment FHA-insured mortgages next year, even if you’ve owned the fixed-up property for less than 90 days. The Federal Housing Administration has decided to extend its rule permitting loans on quick “flips” of renovated houses beyond the scheduled Dec. 31 expiration deadline. … [more]

  • Barry Rutenberg of the NAHB and Carol Galante of the Federal Housing Administration

    The National Association of Home Builders has called for “policymakers to proceed cautiously” when considering a restructuring of the Federal Housing Administration, which for decades has played a key role in stabilizing the housing market. The FHA ended September with a $16.3 billion in losses.

    With rising mortgage delinquencies could exhaust the agency’s reserves, the FHA is expected to announce that it will rely on funding from taxpayers for the first time ever. The decision on taking a taxpayer bailout won’t come until 2013. [more]

  • Carol Galante of the FHA

    The Federal Housing Administration is expected to announce that rising mortgage delinquencies could exhaust its reserves, potentially leading the agency to rely on taxpayer funding for the first time ever, the Wall Street Journal reported.

    Last year, the FHA accounted for one third of home-purchasing loans among owner occupants, the Journal said. By backing mortgages with down payments as low as 3.5 percent, the agency plays a crucial role in supporting the housing market. Private lenders are loath to issue such loans without a government guarantee. [more]

  • FHA relaxes condo-certification rules

    September 21, 2012 11:30AM

    Here’s some encouraging news for condominium unit owners, sellers and buyers: The biggest source of funding for low down payment condo mortgages, the Federal Housing Administration, has revamped controversial rules that caused thousands of buildings across the country to lose their eligibility for FHA financing. The revised guidelines, which were issued Sept. 13 and took effect immediately, should make it easier for large numbers of condo associations to seek certification by FHA. [more]

  • From left: First Residential Vice President Guillermina Chaux and a block in Jamaica (credit: Google)

    Queens led the city in residential foreclosures during the economic downturn, and once again lenders are having trouble in the borough that saw an uptick in foreclosure filings in the first quarter of the year.

    A survey by The Real Deal of Queens’ most active lenders of loans insured by the U.S. Federal Housing Administration, a division of the Department of Housing and Urban Development, found several with delinquency rates above the norm; but one lender stood out for having far more defaults than the others. [more]

  • In a policy switch that could be important to thousands of applicants seeking low-down-payment home mortgages, the Federal Housing Administration has rescinded tough new credit restrictions that had been scheduled to take effect July 1.

    The policy change would have affected borrowers who have one or more collections or disputed-bill accounts on their national credit bureau files, where the aggregate amounts were $1,000 or greater. Some mortgage industry experts estimate that if the now-rescinded rules had gone into effect, as many as one in three FHA loan applicants would have had difficulty being approved. [more]