The Department of Housing and Urban Development (HUD) announced a $1 billion dollar settlement relating to mortgage fraud by Bank of America against the Federal Housing Administration (FHA). HUD, which had been investigating lending practices at Bank of America since 2009 said that Bank of America knowingly made FHA loans to unqualified home buyers. HUD […]
FHA Wins $1 Billion From Bank of America For Claims Related To Mortgage Fraud
February 10, 2012 Filed Under: FHA Eligibility Requirements, FHA loan, FHA mortgage, Mortgage Default
Will The FHA Need A Bailout? Congress Approves “FHA Emergency Solvency Act” As Loan Defaults Soar
February 8, 2012 Filed Under: FHA loan, FHA mortgage, HUD foreclosed homes, Mortgage Default
Loan defaults at the FHA continue to soar according to the latest FHA Single-Family Outlook report issued by the FHA. The latest statistics on the FHA loan portfolio show that almost 18% of all FHA insured mortgages are 30 days past due or more. The number of loans classified as seriously delinquent increased by 19% […]
A First Time FHA Home Buyer Asks “How Much Home Can I Afford?”
February 8, 2012 Filed Under: Benefits of FHA Mortgage, FHA Eligibility Requirements, FHA loan, FHA mortgage
One of the first questions that a first time homebuyer seeking an FHA mortgage will ask is “How much home can I afford?”. It is widely known that banks have tightened underwriting standards in order to prevent homebuyers from purchasing a home that they cannot afford and winding up in default. Although the prospect of […]
FHA Tightens Guidelines On Broken Reverse Mortgage Program, Major Lenders Exit The Business
January 31, 2012 Filed Under: Benefits of FHA Mortgage, FHA HECM, FHA Home Equity Conversion Mortgage, FHA loan, FHA reverse mortgage, Mortgage Default
Reverse mortgages, which have been available to elderly borrowers for over two decades, will become more difficult to obtain in the future. Major reverse mortgage lenders have abandoned the product and the FHA has indicated that they will tighten underwriting guidelines due to the large number of reverse mortgage defaults. Last year, two of the […]
Sometimes, FHA Financing Is Not The Best Option For Homeowners
January 30, 2012 Filed Under: FHA Down Payment Requirements, FHA Eligibility Requirements, FHA loan, FHA mortgage, FHA Mortgage Insurance
FHA mortgage financing offers the benefits of low interest rates, relatively liberal underwriting guidelines and low down payment requirements. Sometimes, however, FHA financing is not the best option for a home buyer. One of the biggest drawbacks to FHA financing is the expensive mortgage insurance charged to borrowers. In addition to being charged an upfront […]