Tag Archives: FHA

The Federal Housing Administration (FHA) is bringing down loan limits on single-family mortgages next year, HUD announced Friday. According to the announcement, FHA's revised ceiling for single-family loan limits will come down to $625,000 from $729,750. "As the housing market continues its recovery, it is important for FHA to evaluate the role we need to play," said FHA Commissioner Carol Galante. "Implementing lower loan limits is an important and appropriate step as private capital returns to portions of the market."

Today's resilient capital market has the capacity to adapt readily to the pending ability-to-repay and qualified mortgage (QM) rules set to take effect January 10, 2014, according to a white paper CoreLogic released Friday. In its analysis, CoreLogic offers general support for the rules and suggests the industry will continue to prosper--albeit with more caution than in the years leading up to the housing crisis. "Making sure a borrower has the ability to repay is good business," the company said.

While the government works toward GSE reform, Keefe, Bruyette & Woods (KBW), a financial services provider; says reform for the Federal Housing Administration (FHA) should also be a top concern.

Mortgage lending remains tight compared to historical norms, and lending could tighten even further as the government takes steps to lessen its role in the market.

As the first government shutdown in nearly 20 years marches on, the Mortgage Bankers Association's (MBA) David Stevens is urging lawmakers to consider the impact that an ongoing shutdown will have on the housing market. Stevens, president and CEO of the trade group, pointed out that while furloughs are currently impacting the out-of-work government employees the most, the effects of a long-term crisis are sure to spread, with lenders having to wait for tax transcripts, Social Security number verification, and other required items.

HUD released on Monday a proposal to define the type of qualified mortgage (QM) that would be insured, guaranteed, or administered by the agency. The proposed definition is aligned with the Ability-to-Repay rule laid out in the Truth in Lending Act (TILA) and includes provisions that prohibit loan terms in excess of 30 years and that limit upfront points and fees to no more than 3 percent--making it consistent with the Consumer Financial Protection Bureau's existing QM rule.

Despite efforts to shore up its insurance fund, the Federal Housing Administration (FHA) is likely to seek a Treasury draw of nearly $1 billion to help cover losses from bad loans. "Sources familiar with the matter" told Reuters Wednesday the agency may need to take a bailout for the first time in its history. While no definitive numbers were given, the White House predicted in its budget earlier this year that FHA may need up to $943 million.

A new tool released Wednesday by the Consumer Financial Protection Bureau (CFPB) provides heat maps and illustrative graphs that detail local mortgage market trends.

[ca_audio url_mp3='http://blogtalk.vo.llnwd.net/o23/show/5/328/show_5328847.mp3' css_class='codeart-google-mp3-player' autoplay='false' download='false' html5='false']James B. Lockhart III is Vice Chairman of WL Ross & Co. LLC and member of the Office of the Chairman and Investment ...

The Federal Housing Administration (FHA) Solvency Act of 2013 (S. 1376) is headed to the Senate after receiving approval from the Committee on Banking, Housing, and Urban Affairs.