Period numbers down
By admin on July 3, 2007
Fewer Americans are taking advantage of FHA Loans from the previous year. In FHA Lending from October of 2006 to May of 2007 the FHA has seen a 35% declining in the number of loans insured over the same time frame from the previous year. During this period the FHA insured $2.33 billion in loans where the previous year saw $3.56 billion.
There was also a drop in refinancing activity where they saw a 45% decrease in volume. There we saw a drop of $1.44 billion from $2.61 billion.
The FHA continues to lose market share to a variety of aggressive capital providers. “They’re struggling,” said Mark Ragsdale, senior vice president of originations at PNC MultiFamily Capital. “There’s still a great role for them, and they still have great programs; they just have to work on their execution.”
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MLB to pay tribute to Military, past and present
By admin on July 2, 2007
Major League Baseball, for the second year in a row, is planning on a salute to the military for all July 4th baseball games. There will be pre-game festivities including fly-overs, color guard performances, and first pitch ceremonies to name a few things. There will also be many Public Service Announcements from the Department of Defense’s America Supports You program and the Department of Veteran Affairs. There will also be a PSA sponsored by Major League Baseball that will air in the seventh inning of every game thanking all active and retired military personnel.
“Major League Baseball, along with its Clubs, is proud to reinforce the union between baseball and America with our efforts this Fourth of July,” said Commissioner of Baseball Allan H. (Bud) Selig. “We are also honored to join with the Department of Defense and the Department of Veterans Affairs to show support for the daily sacrifices made by former and active military personnel.”
Throughout the 2007 season MLB has already made an effort to thanking our veterans and active duty military personnel by visiting VA Hospitals.
“Paying tribute to America’s veterans and our military is a fitting way to recognize the service and sacrifice of those who have put on the uniform of the United States,” said Jim Nicholson, Secretary of Veterans Affairs. “I salute Major League Baseball, and all the players, coaches and fans for their patriotic expression of appreciation for our nation’s heroes.”
Each year the VA helps out many veterans by insuring va home loans throughout the country. Many discharged Veterans would not qualify for a conventional loan but the VA insures them a competitive rate loan to become homeowners as well.
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But it’s not even my birthday
By admin on June 29, 2007
Happy Birthday, FHA! Today is the 73rd birthday of the Housing and Urban Developments program, the FHA.
“FHA has given millions of families the opportunity to pursue the dream of homeownership,” said Deputy Secretary Bernardi. “Our goal is to continue our education and outreach efforts while also retooling and refining FHA to insure safer mortgages that will keep the dream alive for the next generation of home buyers.”
The FHA has helped more than 34 million families achieve the ultimate American dream by insuring loans for individuals with less than stellar credit. These figures make the FHA the largest insurer of mortgages in the world.
It’s fitting that National Homeownership Month falls in the same month as the FHA’s birthday. Although the month is here to educate homeowners and future homeowners, individuals are encouraged to seek advice throughout the year. There are over 2,300 approved HUD counseling programs throughout the country to lend advice any day of the year.
“Although June is National Homeownership Month, people can learn about the home buying process throughout the year by contacting a HUD approved housing counseling agency,” explained Bernardi.
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Reverse industry boom
By admin on June 28, 2007
Reverse Mortgages are becoming increasingly popular amongst the Baby Boomer generation. The market for reverse mortgages is also projected to increase throughout time as more and more Americans are living past the age of 62 and need help with their retirement. The number of reverse mortgage users is looking to exceed last year’s record year by the middle of the summer.
Check out this article on reverse mortgages with projections for the future.
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FHA wins
By admin on June 27, 2007
In a stunning upset, FHA backed loans produced fewer foreclosures than subprime loans. No one could have predicted this magnificent upset as subprime loans had more than twice as many foreclosures as their FHA loan counterpart.
These loans are very much the same as both recipients are first time homebuyers and possess less than stellar financial standing.
“We serve at-risk borrowers,” said Montgomery, a keynote speaker at a homeownership preservation forum at HUD’s Denver office. Montgomery oversees the $400 billion FHA insurance portfolio.
“The key is the FHA’s loss-mitigation program,” Montgomery said. “We want to keep people in their homes.”
In the 80’s, the HUD was the largest landlord in the Greater Denver area having close to 15,000 foreclosed homes in its possession. With 65 percent of the mortgages in Denver being FHA insured loans, while today that figure is around five percent.
There were only 247 foreclosed FHA insured homes in Colorado for May. Colorado ranks 10th in the nation for foreclosure rate in the United States.
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Little guy could lose out again
By admin on June 26, 2007
Lower to middle class down payment assistance could be a thing of the past. Not that the system had been around that long, 1997, to be exact. Since the first down payment assistance program started, with Nehemiah in 1997, these programs have been able to grow to over 40% of the Federal Housing Administration’s annual mortgage production.
“Right now, low to middle class families are utilizing down payment assistance programs that are under scrutiny by the Department of Housing and Urban Development. These programs allow people, who qualify by income guidelines, to accept a monetary gift from charitable organizations - such as the Nehemiah Corporation of America - and use it for their down payments. This practice has helped thousands remove themselves from their dead-end rental situations.”
Over the past 10 years these programs for down payment assistance have helped over 1 million people achieve the American dream of becoming a homeowner. These organizations have distributed $3.8 billion in down payment assistance. There is no government money involved in these programs but the HUD wishes to eliminate these programs which could bring the tax payer into the situation.
“HUD’s proposal, titled “Standards for Mortgagor’s Investment in Mortgaged Property,” targets home buyers who obtain loans insured by FHA, by removing the option to use charitable organizations’ assistance or private funding with ties to the seller for down payments and closing costs. HUD claims this type of assistance has been an issue for many years.”
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Popular amongst the retired crowd
By admin on June 21, 2007
An overwhelming number of seniors are taking advantage of reverse mortgages throughout the country. 300,000 seniors are taking advantage of the opportunity to make their home work for them. By taking advantage of the Home Equity Conversion Mortgage loan program these individuals have been able to secure cash for their home without even having to move.
“For some senior citizens on fixed incomes, reverse mortgages are a great way to cash in on their home equity to make needed repairs, pay unexpected medical bills or just to supplement their retirement. Seniors shouldn’t have to choose between taking out a loan to fix up their home and putting food on the table. With a reverse mortgage, this difficult decision is a thing of the past,” U.S. Housing and Urban Development Secretary Alphonso Jackson said.
Over 76,000 seniors used a reverse mortgage in 2006 which was almost 70,000 more than that issued in 2000. In 2007, the FHA has already insured 69,833 which puts them on pace to break the mark set in 2006.
As the lone high mark in the housing market, the reverse mortgage will likely become more and more of an option, as the baby boomers reach the required age of 62. With over 34 million Americans over the age of 65 and a projection of 70 million by the year 2030 the use of reverse mortgages only looks to peak each year.
“As retiring baby boomers become eligible, reverse mortgages will continue to gain in popularity. Seniors are looking for financial independence and security late in life, and reverse mortgages continue to be their best bet,” Jackson added.
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Homeownership month continues
By admin on June 19, 2007
“Promotion and Protecting Homeownership” is this year’s theme for National Homeownership month which is taking place this month. The theme is focusing on first-time home buying as well as informing current homeowners and potential homeowners about the responsibility that comes with being a homeowner. This month’s theme will also encourage individuals to read the “fine print” of their mortgage papers.
The Department of Housing and Urban Development has been around since 1934 and has been available to help individuals who may otherwise not be granted a competitive mortgage and a chance for ownership. The Department has helped over 34 million families since its inception. As of late, the FHA loan has fallen out of favor with the American populous for that of the subprime market. With the current rate of foreclosures and defaulting, the shift towards modernizing the current the FHA system is in high demand.
The goal of the Homeownership month is to shift funding in the department towards educating Americans in the ways to obtain the American Dream of homeownership. Over 70 percent of Americans are homeowners with a growing number of minority families. With the legislation passing through the chambers of Congress the modernization seems to be coming to fruition. With the passage of the FHA Modernization Act, the amount of homeowners who will actually be able to afford their payments will most likely increase.
The American Dream may seem just like that, the American Dream. Education is key to a successful homeowner and this month of Homeownership is sure to educate everyone in the ways of responsible homeownership.
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Free FHA Lending Guide
By admin on June 18, 2007
I know that they released this information a few weeks ago but I thought I would revisit it. The Mortgage Loan Place released a free Lending Guide for those seeking information about FHA Loans.
The guide is completely comprehensive and has had a lot of great feedback from the industry and consumers alike. If you get a chance to you should definitely take the time to download and look over all the great information that they worked so hard in presenting.
The site is quite clean in presentation and has the best information on the web regarding FHA Loan programs that is just short of the HUD site. But who can blame them for not having as much information as the government’s page.
If you are looking for great information to present to your consumers or readers then definitely check out the Mortgage Loan Place and their comprehensive site about FHA Lending.
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How much does America know about FHA reform?
By admin on June 15, 2007
Majority of the American Public favors FHA modernization. Here are some key statistics about a study conducted on how aware the American public is about the many key changes that are sought in regards to the FHA Loan program.
When it comes to being completely clueless on the act itself more Americans favor the changes as those that oppose it, 26% to 9% while those that remain undecided rests at 13%. The percent of those that actually know what the Expanding American Homeownership Act of 2007 is at 48%.
When given a description of the Act itself those that support it went up to 80%. What were they told about the Act, “the rules to make it easier for the FHA to make mortgage loans available to first time homeowners and people with moderate incomes.” With 55% of those asked about it favored the change strongly.
“Only 35% of African Americans are unaware of the Expanding American Homeownership Act of 2007, compared to majorities of whites (55%) and Hispanics (51%). Without any explanation, four-in-ten African Americans (43%) favor the legislation — a much larger proportion compared to whites (23%) and Hispanics (30%). These elevated levels of support are maintained after respondents heard a brief description; 88% of African Americans favor the Expanding American Homeownership compared again to 78% of whites and 81% of Hispanics.”
The survey was conducted by The Mellman Group of Washington, DC and the numbers were brought to you from their press release.
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