Federal Programs extended to 2016 and other news
While the HAMP program is being extended to 2016, whose who utilized it to save their home may be seeing their interest rates increase...
Fairly big news from other departments in the Federal government--
HAMP PROGRAM EXTENDED THROUGH 2016
A new financing partnership between the Treasury Department and the Department of Housing and Urban Development (HUD) will support the Federal Housing Administration’s (FHA) multifamily mortgage risk-sharing program. With the new Treasury-HUD partnership, the Federal Financing Bank (FFB) will use its authority to finance FHA-insured mortgages that support the construction and preservation of rental housing.
Additionally, the Making Home Affordable (MHA) program will be extended at least through Dec. 31, 2016, to allow the Administration to continue assisting homeowners facing foreclosure and those whose homes are underwater. To date, the MHA program has provided relief to homeowners across the country, including more than 1.3 million homeowners who have permanently modified their mortgages, saving a median of $540 a month in mortgage payments. The Treasury Department’s housing assistance programs have also become a model for the broader housing sector, setting a new standard for the mortgage industry on how to restructure loans and help homeowners. More than 5 million homeowners have been helped by private lenders who have, in many cases, used a similar framework to the one created by MHA’s Home Affordable Modification Program.
More info
FHA ISSUES NEW RULES IN REVERSE MORTGAGE PROGRAM ADVERTISING PRACTICES
The Federal Housing Administration (FHA) has published a Mortgagee Letter reminding lenders participating in the agency’s Home Equity Conversion Mortgage (HECM) Program to make certain senior borrowers are fully informed of all their options when applying for reverse mortgages. FHA’s Mortgagee Letter also reinforces the agency’s prohibition against misleading or deceptive advertising and that this prohibition extends to misleading or deceptive descriptions of the HECM program.
FHA’s guidance is intended to protect HECM borrowers from misleading advertising and presentations that appear to limit their options rather than informing them of the full range of available HECM offerings.
FHA-approved lenders are required to explain in clear, consistent language all requirements and features of the HECM program and may not mislead or otherwise cause a senior borrower to believe that the HECM product contains any features or limitations that are inconsistent with FHA’s requirements.
Lenders are prohibited from using any misleading or misrepresentative advertising or marketing materials in connection with the HECM program or from making any statement or representation that could mislead a mortgagor as to his or her rights under a HECM. In addition, mortgagees may not state or imply that as a result of their approval to participate in FHA programs that any of their products have been endorsed by FHA or HUD. All advertisements or marketing materials used in connection with the HECM program must include a prominently displayed disclaimer that clearly informs the public that such materials are not from HUD or FHA and the document was not approved by the Department or Government Agency.
Fairly big news from other departments in the Federal government--
HAMP PROGRAM EXTENDED THROUGH 2016
A new financing partnership between the Treasury Department and the Department of Housing and Urban Development (HUD) will support the Federal Housing Administration’s (FHA) multifamily mortgage risk-sharing program. With the new Treasury-HUD partnership, the Federal Financing Bank (FFB) will use its authority to finance FHA-insured mortgages that support the construction and preservation of rental housing.
Additionally, the Making Home Affordable (MHA) program will be extended at least through Dec. 31, 2016, to allow the Administration to continue assisting homeowners facing foreclosure and those whose homes are underwater. To date, the MHA program has provided relief to homeowners across the country, including more than 1.3 million homeowners who have permanently modified their mortgages, saving a median of $540 a month in mortgage payments. The Treasury Department’s housing assistance programs have also become a model for the broader housing sector, setting a new standard for the mortgage industry on how to restructure loans and help homeowners. More than 5 million homeowners have been helped by private lenders who have, in many cases, used a similar framework to the one created by MHA’s Home Affordable Modification Program.
More info
FHFA ASSISTS 3.2 MILLION TROUBLED HOMEOWNERS
Fannie Mae and Freddie Mac have completed nearly 3.2 million foreclosure prevention actions since the start of the conservatorships in 2008, with approximately 88,800 actions occurring in the first quarter. These measures have helped more than 2.6 million borrowers stay in their homes, including 1.6 million who received permanent loan modifications.
These actions are detailed in the Federal Housing Finance Agency's quarterly Foreclosure Prevention Report, which details activities by state in an online, interactive Borrower Assistance Map for Fannie Mae and Freddie Mac mortgages.
Also noted in the report:
• Forty-two percent of all permanent loan modifications helped to reduce homeowners' monthly payments by more than 30 percent in the first quarter.
• Approximately 27 percent of borrowers who received permanent loan modifications in the first quarter had portions of their mortgage balance forborne.
• Approximately 14,900 short sales and deeds-in-lieu were completed in the first quarter, bringing the total to more than 566,800 since the start of the conservatorships.
• Third-party sales and foreclosure sales fell slightly to 47,300 while foreclosure starts decreased 25 percent in the first quarter.
• While the total number of troubled borrowers continued to decline, 31 percent of these borrowers remained deeply delinquent at the end of the first quarter. Florida, New York and New Jersey have the highest number of deeply delinquent loans (365+ days).
More info
Fannie Mae and Freddie Mac have completed nearly 3.2 million foreclosure prevention actions since the start of the conservatorships in 2008, with approximately 88,800 actions occurring in the first quarter. These measures have helped more than 2.6 million borrowers stay in their homes, including 1.6 million who received permanent loan modifications.
These actions are detailed in the Federal Housing Finance Agency's quarterly Foreclosure Prevention Report, which details activities by state in an online, interactive Borrower Assistance Map for Fannie Mae and Freddie Mac mortgages.
Also noted in the report:
• Forty-two percent of all permanent loan modifications helped to reduce homeowners' monthly payments by more than 30 percent in the first quarter.
• Approximately 27 percent of borrowers who received permanent loan modifications in the first quarter had portions of their mortgage balance forborne.
• Approximately 14,900 short sales and deeds-in-lieu were completed in the first quarter, bringing the total to more than 566,800 since the start of the conservatorships.
• Third-party sales and foreclosure sales fell slightly to 47,300 while foreclosure starts decreased 25 percent in the first quarter.
• While the total number of troubled borrowers continued to decline, 31 percent of these borrowers remained deeply delinquent at the end of the first quarter. Florida, New York and New Jersey have the highest number of deeply delinquent loans (365+ days).
More info
The Federal Housing Administration (FHA) has published a Mortgagee Letter reminding lenders participating in the agency’s Home Equity Conversion Mortgage (HECM) Program to make certain senior borrowers are fully informed of all their options when applying for reverse mortgages. FHA’s Mortgagee Letter also reinforces the agency’s prohibition against misleading or deceptive advertising and that this prohibition extends to misleading or deceptive descriptions of the HECM program.
FHA’s guidance is intended to protect HECM borrowers from misleading advertising and presentations that appear to limit their options rather than informing them of the full range of available HECM offerings.
FHA-approved lenders are required to explain in clear, consistent language all requirements and features of the HECM program and may not mislead or otherwise cause a senior borrower to believe that the HECM product contains any features or limitations that are inconsistent with FHA’s requirements.
Lenders are prohibited from using any misleading or misrepresentative advertising or marketing materials in connection with the HECM program or from making any statement or representation that could mislead a mortgagor as to his or her rights under a HECM. In addition, mortgagees may not state or imply that as a result of their approval to participate in FHA programs that any of their products have been endorsed by FHA or HUD. All advertisements or marketing materials used in connection with the HECM program must include a prominently displayed disclaimer that clearly informs the public that such materials are not from HUD or FHA and the document was not approved by the Department or Government Agency.
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