In a move that will help first-time home buyers, President Obama announced today that the Federal Housing Administration (FHA) will reduce its annual mortgage insurance premiums by 0.5 percentage points from 1.35 percent to 0.85 percent during an address in Phoenix.
A fact sheet released by the White Housesays this reduction in premiums will produce an average savings of $900 annually for all new FHA borrowers and that the lowered premiums will create opportunities for 250,000 new home owners to purchase a home over the next three years.
“In recent years, many aspiring home owners have been waiting on the sidelines before buying a new home,” the fact sheet states. “By making mortgages more affordable and helping create further confidence among those wanting to buy a home, the FHA premium reduction will help hundreds of thousands of additional families own a home for the first time.”
Your Home Builders Association supports this action and has previously called on FHA to lower its insurance fees to further boost the housing recovery and reduce the cost of creditworthy borrowers. National Association of Home Builders Chairman Kevin Kelly, who attended the Phoenix event, issued the following statement after Obama spoke:
“NAHB commends the President for taking action to reduce FHA’s annual mortgage insurance premiums by 50 basis points to 0.85 percent. Lower premiums will make home loans more affordable for qualified borrowers, particularly first-time buyers, and help to alleviate tight credit conditions in the mortgage market. This prudent course reflects a recent actuarial report that FHA is back in black and strengthening its financial health. The new premium structure will allow FHA to continue building its reserves.”
The Home Builders Association of Greenville are your neighbors and community leaders providing education and support for building industry professionals. We create jobs, encourage homeownership, and promote responsible growth throughout the upstate of South Carolina.
Showing posts with label FHA. Show all posts
Showing posts with label FHA. Show all posts
Thursday, January 8, 2015
Thursday, December 12, 2013
Federal agencies exempt certain high-priced mortgages from appraisal requirements
Six federal financial regulatory agencies today issued a final rule that creates exemptions from certain appraisal requirements for a subset of higher-priced mortgage loans. The exemptions are intended to save borrowers time and money while still ensuring that the loans are financially sound.
The appraisal requirements for higher-priced mortgages were established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Under the Dodd-Frank Act, closed-end mortgage loans are considered to be higher-priced if they are secured by a consumer’s home and have interest rates above a certain threshold. The Dodd-Frank Act requires creditors to obtain a written appraisal based on a physical visit of the home’s interior before making these loans.
The final rule provides that loans of $25,000 or less and certain “streamlined” refinancings are exempt from the Dodd-Frank Act appraisal requirements, which go into effect on January 18, 2014.
In addition, the final rule contains special provisions for manufactured homes, which can present unique issues in determining the appropriate valuation method. To ensure that access to affordable housing options is not hindered while creditors make the necessary adjustments, the requirements for manufactured home loans will not become effective for 18 months. Starting on July 18, 2015, loans secured by an existing manufactured home and land will be subject to the Dodd-Frank Act’s appraisal requirements. Loans secured by a new manufactured home and land will be exempt only from the requirement that the appraiser visit the home’s interior. For loans secured by manufactured homes without land, creditors will be allowed to use other valuation methods without an appraisal, such as using third-party valuation services or “book values.”
In January 2013, a final rule implementing the new Dodd-Frank Act appraisal requirements was issued by the Federal Reserve Board, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the Office of the Comptroller of the Currency. Compliance with the January 2013 final rule will become mandatory on January 18, 2014. These same agencies are jointly issuing today’s final rule to provide additional exemptions in response to public comments.
The appraisal requirements for higher-priced mortgages were established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Under the Dodd-Frank Act, closed-end mortgage loans are considered to be higher-priced if they are secured by a consumer’s home and have interest rates above a certain threshold. The Dodd-Frank Act requires creditors to obtain a written appraisal based on a physical visit of the home’s interior before making these loans.
The final rule provides that loans of $25,000 or less and certain “streamlined” refinancings are exempt from the Dodd-Frank Act appraisal requirements, which go into effect on January 18, 2014.
In addition, the final rule contains special provisions for manufactured homes, which can present unique issues in determining the appropriate valuation method. To ensure that access to affordable housing options is not hindered while creditors make the necessary adjustments, the requirements for manufactured home loans will not become effective for 18 months. Starting on July 18, 2015, loans secured by an existing manufactured home and land will be subject to the Dodd-Frank Act’s appraisal requirements. Loans secured by a new manufactured home and land will be exempt only from the requirement that the appraiser visit the home’s interior. For loans secured by manufactured homes without land, creditors will be allowed to use other valuation methods without an appraisal, such as using third-party valuation services or “book values.”
In January 2013, a final rule implementing the new Dodd-Frank Act appraisal requirements was issued by the Federal Reserve Board, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the Office of the Comptroller of the Currency. Compliance with the January 2013 final rule will become mandatory on January 18, 2014. These same agencies are jointly issuing today’s final rule to provide additional exemptions in response to public comments.
Tuesday, August 28, 2012
NAHB: Top 12 Accomplishments Summer 2012, Number 3: Credit Disputes Rule
Builder Review Daily is highlighting the top 12 actions taken on behalf of Home Builders so far this Spring.
Accomplishment number 3: FHA Withdrawal of the “Credit Disputes” Rule
NAHB and other housing and banking industry groups helped convince the Federal Housing Administration (FHA) to withdraw a controversial rule slated to go into effect on July 1 that would have prohibited borrowers with any credit disputes of more than $1,000 from obtaining FHA financing.
Earlier this year, FHA issued a mortgagee letter stating that buyers either had to pay off ongoing credit disputes of more than $1,000 that appeared on their credit reports or show proof that they have entered into a repayment plan with their creditors before they could qualify for an FHA loan. NAHB and others in the housing finance community opposed this action citing concerns that it would further restrain the flow of mortgage credit and prevent creditworthy borrowers from qualifying for an FHA-insured loan. Responding to these concerns, on June 15, the FHA issued an updated mortgagee letter formally rescinding its earlier ruling on this matter. However, the agency is expected to issue new guidance on this topic in the near future, so we'll be keeping a close eye on how this develops going forward.
Accomplishment number 3: FHA Withdrawal of the “Credit Disputes” Rule
NAHB and other housing and banking industry groups helped convince the Federal Housing Administration (FHA) to withdraw a controversial rule slated to go into effect on July 1 that would have prohibited borrowers with any credit disputes of more than $1,000 from obtaining FHA financing.
Earlier this year, FHA issued a mortgagee letter stating that buyers either had to pay off ongoing credit disputes of more than $1,000 that appeared on their credit reports or show proof that they have entered into a repayment plan with their creditors before they could qualify for an FHA loan. NAHB and others in the housing finance community opposed this action citing concerns that it would further restrain the flow of mortgage credit and prevent creditworthy borrowers from qualifying for an FHA-insured loan. Responding to these concerns, on June 15, the FHA issued an updated mortgagee letter formally rescinding its earlier ruling on this matter. However, the agency is expected to issue new guidance on this topic in the near future, so we'll be keeping a close eye on how this develops going forward.
Tuesday, June 26, 2012
NAHB: FHA Rescinds “Credit Disputes” Rule – For Now
In good news for home buyers this week, NAHB and other housing and banking industry groups have helped convince the Federal Housing Administration (FHA) to withdraw a controversial rule slated to go into effect on July 1 that would have prohibited borrowers with any credit disputes of more than $1,000 from obtaining FHA financing.
Earlier this year, FHA issued a mortgagee letter stating that buyers either had to pay off ongoing credit disputes of more than $1,000 that appeared on their credit reports or show proof that they have entered into a repayment plan with their creditors before they could qualify for an FHA loan. NAHB and others in the housing finance community opposed this action citing concerns that it would further restrain the flow of mortgage credit and prevent creditworthy borrowers from qualifying for an FHA-insured loan.
Thankfully, on June 15, the FHA issued an updated mortgagee letter formally rescinding its earlier ruling on this matter. However, the agency is expected to issue new guidance on this topic in the near future.
Monday, June 4, 2012
NAHB's Top 12 Actions, Number 3: a comprehensive framework for housing finance reform
Builder Review Daily continues to highlight the Top 12 actions your HBA has taken on your behalf at the Federal level.
Number 3, release of a comprehensive framework for housing finance reform and active discussions with lawmakers:
Because our members’ businesses depend upon the existence of an accessible and reliable housing finance system, NAHB has been deeply engaged in policymakers’ conversations about how best to reform the system, wind down Fannie Mae and Freddie Mac, and ensure a stable supply of credit for both home buyers and rental housing. NAHB made a major contribution to this debate with the recent release of a comprehensive framework for housing finance reform that includes our specific recommendations.
Developed through a specially appointed NAHB working group and approved by NAHB's Board of Directors in Orlando, this plan stresses that any transition away from the current housing finance system must be done in a careful and deliberate manner to avoid further disruptions to an already fragile market. It is also built upon the recognition that, as the private market assumes a greater role in the marketplace, it is vital to maintain an appropriate level of government support to preserve financial stability, promote investor confidence and ensure liquidity/stability for homeownership and rental housing. In keeping with these core directives, NAHB's plan seeks to:
Number 3, release of a comprehensive framework for housing finance reform and active discussions with lawmakers:
Because our members’ businesses depend upon the existence of an accessible and reliable housing finance system, NAHB has been deeply engaged in policymakers’ conversations about how best to reform the system, wind down Fannie Mae and Freddie Mac, and ensure a stable supply of credit for both home buyers and rental housing. NAHB made a major contribution to this debate with the recent release of a comprehensive framework for housing finance reform that includes our specific recommendations.
Developed through a specially appointed NAHB working group and approved by NAHB's Board of Directors in Orlando, this plan stresses that any transition away from the current housing finance system must be done in a careful and deliberate manner to avoid further disruptions to an already fragile market. It is also built upon the recognition that, as the private market assumes a greater role in the marketplace, it is vital to maintain an appropriate level of government support to preserve financial stability, promote investor confidence and ensure liquidity/stability for homeownership and rental housing. In keeping with these core directives, NAHB's plan seeks to:
- Include private, federal and state sources of housing capital.
- Offer a reasonable menu of sound mortgage products for both single-family and multifamily housing that is governed by prudent underwriting standards and adequate oversight and regulation.
- Transition Fannie Mae and Freddie Mac to a new mortgage securitization system for single-family and multifamily conventional mortgages.
- Consider the 12 regional Federal Home Loan Banks for this securitization role.
- Phase in the new system over time and allow Fannie and Freddie to remain operational until the alternative system is fully functioning.
- Provide a federal backstop to ensure that conventional 30-year home loans and adjustable rate mortgages are available at reasonable interest rates and terms.
- Structure the federal support to the conventional mortgage market through a privately funded insurance fund similar to the FDIC’s backing of the fund that insures savings deposits. This will allow the government to be the insurer of last resort in order to reduce the risk to taxpayers.
- Continue role of federal housing agencies (HUD, FHA, VA, USDA, Ginnie Mae).
- Expand the role of the Federal Home Loan Banks in the housing finance system.
- Restart a carefully regulated fully private mortgage-backed securities market through reforms to the securities ratings system to remove conflicts of interest.
- Repair other flaws that produced the housing boom and bust by closing the gaps in standards and oversight that allowed and facilitated the improper and illegal activities in financial and mortgage markets.
Thursday, February 23, 2012
NAHB Chairman Barry Rutenberg on the importance of Home Building to the economy
The following editorial appeared Wednesday, February 22, 2012, in the Washington Times
A plan to end government support for homeownership ("Get the Fed out of the housing market," Commentary, Friday) is a recipe for economic disaster that would surely throw the economy back into recession.
Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) currently guarantee or insure more than 90 percent of all home mortgage activity. Even those arguing to abolish Fannie Mae and Freddie Mac admit this would need to be a years-long transition because the private market is not operating today. Private lenders have shown little inclination to step up to the plate and fill the void that would result if the government backstop essential to ensuring liquidity and stability for homeownership were abruptly halted.
Housing is the key to long-term prosperity. Residential construction usually accounts for 5 to 6 percent of total economic output, yet it stands at a meager 2.5 percent today. We don't have an excess supply of housing; we have record-low new home inventories and a dearth of housing demand resulting from high unemployment, stagnant income growth and a drop in household formations.
The Federal Reserve is offering ideas to stimulate demand because Fed policymakers understand that there can be no sustainable economic recovery without a housing recovery. Building 100 homes generates more than 300 full-time jobs and $8.9 million in federal, state and local tax revenues that sustain local schools and communities across the land. New homes are needed in scores of markets that are experiencing renewed growth and confidence, but this demand is going unmet because of a lack of credit for homebuyers and homebuilders alike.
Maintaining a federal role for housing and providing credit for qualified homebuyers and builders with viable homebuilding projects is a necessary first step to restore the health of the housing market, create jobs and to keep the economic expansion moving ahead.
BARRY RUTENBERG
Chairman
National Association of Home Builders
Washington
Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) currently guarantee or insure more than 90 percent of all home mortgage activity. Even those arguing to abolish Fannie Mae and Freddie Mac admit this would need to be a years-long transition because the private market is not operating today. Private lenders have shown little inclination to step up to the plate and fill the void that would result if the government backstop essential to ensuring liquidity and stability for homeownership were abruptly halted.
Housing is the key to long-term prosperity. Residential construction usually accounts for 5 to 6 percent of total economic output, yet it stands at a meager 2.5 percent today. We don't have an excess supply of housing; we have record-low new home inventories and a dearth of housing demand resulting from high unemployment, stagnant income growth and a drop in household formations.
The Federal Reserve is offering ideas to stimulate demand because Fed policymakers understand that there can be no sustainable economic recovery without a housing recovery. Building 100 homes generates more than 300 full-time jobs and $8.9 million in federal, state and local tax revenues that sustain local schools and communities across the land. New homes are needed in scores of markets that are experiencing renewed growth and confidence, but this demand is going unmet because of a lack of credit for homebuyers and homebuilders alike.
Maintaining a federal role for housing and providing credit for qualified homebuyers and builders with viable homebuilding projects is a necessary first step to restore the health of the housing market, create jobs and to keep the economic expansion moving ahead.
BARRY RUTENBERG
Chairman
National Association of Home Builders
Washington
Thursday, December 1, 2011
NAHB: FHA conforming loan limits restored for two years
In an important victory for NAHB, the housing industry, and consumers, Congress voted to reinstate for another two years the higher conforming loan limits for the Federal Housing Administration that expired on Sept. 30. President Obama signed the measure into law on Nov. 18.
NAHB has led the industry charge to restore the higher loan limits, which is essential to help mend the struggling housing market, stabilize home values, provide constancy while private investors re-enter the market and ensure that millions of creditworthy home borrowers can access the best possible mortgage rates.
In the days and weeks leading up to the vote, NAHB launched a major grassroots push, urging our members to call, email and meet with their lawmakers on this issue. Your HBA of Greenville supported these efforts by holding meetings with Congressman Trey Gowdy and Jeff Duncan.
NAHB has led the industry charge to restore the higher loan limits, which is essential to help mend the struggling housing market, stabilize home values, provide constancy while private investors re-enter the market and ensure that millions of creditworthy home borrowers can access the best possible mortgage rates.
In the days and weeks leading up to the vote, NAHB launched a major grassroots push, urging our members to call, email and meet with their lawmakers on this issue. Your HBA of Greenville supported these efforts by holding meetings with Congressman Trey Gowdy and Jeff Duncan.
Greenville, Pickens, and Laurens counties were particularly impacted by the reduction in the conforming loan limits. In those counties the limits were reduced by nearly $25,000, while the limits remained the same in the rest of the Upstate. With this victory, the original loan limits have been restored.
Wednesday, November 30, 2011
FHFA: Maximum Conforming Loan Limits to Remain Unchanged in 2012
The Federal Housing Finance Agency (FHFA) announced last week that the maximum conforming loan limits for loans originated by Fannie Mae and Freddie Mac will remain unchanged in 2012. The current conforming loan limit for all counties in South Carolina is $417,000 for a single-family home, and $533,850 for a two-family home.
You can read the entire release at fhfa.gov by clicking here.
You can see the conforming loan limits for the entire country at fhfa.gov by clicking here.
Higher loan limits that were established for certain high cost counties, that were enacted in 2008, expired in September of this year. The loan higher loan limits for Federal Housing Authority (FHA) loans were recently restored by Congress. Greenville, Pickens, and Laurens counties were impacted by the lowered FHA loan limits. However, no South Carolina counties were impacted by the lowering of loan limits for Fannie Mae or Freddie Mac.
You can read the entire release at fhfa.gov by clicking here.
You can see the conforming loan limits for the entire country at fhfa.gov by clicking here.
Higher loan limits that were established for certain high cost counties, that were enacted in 2008, expired in September of this year. The loan higher loan limits for Federal Housing Authority (FHA) loans were recently restored by Congress. Greenville, Pickens, and Laurens counties were impacted by the lowered FHA loan limits. However, no South Carolina counties were impacted by the lowering of loan limits for Fannie Mae or Freddie Mac.
Wednesday, November 16, 2011
Call To Action: Restore FHA Loan Limits
H.R. 2112 Restores FHA Mortgage Loan Limits
Write your members of Congress via Capitol Connect
Call your members of Congress at (866) 924-NAHB (6242)![]()
![]()
![]()
![]()
![]()
On September 30, 2011, Congress allowed the conforming loan limits for Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) to shrink. The failure of Congress and the Obama Administration to act on the loan limits extension is the beginning of an effort to greatly reduce the federal government’s role in housing.
Over the last few weeks, Congress has been hard at work crafting language to restore conforming loan limits. H.R. 2112 is an appropriations bill that allows the Federal Housing Administration (FHA) mortgage loan limits to be restored to their previous levels. Congress will be voting on H.R. 2112 later this week. Restoring the loan limits will provide consumers in all markets access to safe, affordable mortgage financing.
Write your members of Congress via Capitol Connect
Call your members of Congress at (866) 924-NAHB (6242)
On September 30, 2011, Congress allowed the conforming loan limits for Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) to shrink. The failure of Congress and the Obama Administration to act on the loan limits extension is the beginning of an effort to greatly reduce the federal government’s role in housing.
Over the last few weeks, Congress has been hard at work crafting language to restore conforming loan limits. H.R. 2112 is an appropriations bill that allows the Federal Housing Administration (FHA) mortgage loan limits to be restored to their previous levels. Congress will be voting on H.R. 2112 later this week. Restoring the loan limits will provide consumers in all markets access to safe, affordable mortgage financing.
In the Upstate, the FHA conforming loan limits were reduced in Greenville, Pickens, and Laurens counties, but not in the rest of the Upstate.
Housing markets remain fragile. Restoring the limits will provide stability, while private investors reenter the market.
Click here to see the impacts of the lower FHA loan limits by county
Talking Point:
Housing markets remain fragile. Restoring the limits will provide stability, while private investors reenter the market.
Click here to see the impacts of the lower FHA loan limits by county
Talking Point:
- Support H.R. 2112 to stabilize housing prices and the mortgage market.
- Write to your members of Congress via Capitol Connect;
- Call your members of Congress at (866) 924-NAHB (6242).
Thursday, November 3, 2011
Call to action: contact your member of Congress about lowered loan limits
The National Association of Home Builders issued a call to action today asking HBA members to contact their members of Congress and seek their support for extending the conforming loan limits for Federally-backed home mortgages.
If you and your customers want to continue to receive the types of mortgages you have become used to getting, the ones with the best interest rates, lower fees, a lower down payment requirement, and less stringent credit requirements, you need to tell your U.S. Representative to extend the conforming loan limits for home mortgages backed by the Federal government.
If you and your customers want to continue to receive the types of mortgages you have become used to getting, the ones with the best interest rates, lower fees, a lower down payment requirement, and less stringent credit requirements, you need to tell your U.S. Representative to extend the conforming loan limits for home mortgages backed by the Federal government.
"Conforming Loans" are those mortgage loan amounts that qualify to be backed by the Federal government under programs run by Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). On September 30 Congress allowed the maximum limits for loans backed by the Federal government to expire, and the average loan limit fell by about 10 percent.
For the Upstate, the conforming loan limits did not change for Fannie Mae and Freddie Mac. The limits did change, however, for FHA-backed mortgages. The limit dropped 8 percent to $271,050 on a home with a maximum price of $280,881 in Greenville, Pickens, and Laurens counties. According to NAHB, 2.24 percent of Greenville County's owner-occupied housing stock no longer qualifies for an FHA mortgage. In Pickens County, 1.61 percent of owner-occupied homes no longer qualify, and in Laurens County 1.82 percent no longer qualify.
Fannie Mae, Freddie Mac, and FHA guarantee most traditional mortgages in America today. What are the consequences of these changes? The next time you, your family, or your customers seek a mortgage that are higher than these lowered limits, you will be required to seek what is called a Jumbo Mortgage. These mortgages come with higher rates, higher fees, higher down payment requirements, and stricter credit requirements.
Monday, September 19, 2011
NAHB Call to Action: Congress Must Extend Conforming Loan Limits Now
NAHB issued the following Call to Action. Consider writing your member of Congress and ask him or her to support extending the conforming loan limits on mortgages.
In two short weeks, on October 1, 2011, the conforming loan limits for Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) will be lowered. The disruption that would occur with the lowering of the current loan limits would further damage the already fragile housing market and impede the economic recovery of our nation.
The housing finance system is under a cloud of uncertainty. The federal government, through the GSEs and the FHA, is currently accounting for nearly all mortgage credit flowing to home buyers and rental properties. Lowering the loan limits will only further restrict overall mortgage liquidity in the marketplace and place further downward pressure on home prices.
Talking Points:
Write Your Members of Congress at www.capitolconnect.com/builderlink
In two short weeks, on October 1, 2011, the conforming loan limits for Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) will be lowered. The disruption that would occur with the lowering of the current loan limits would further damage the already fragile housing market and impede the economic recovery of our nation.
The housing finance system is under a cloud of uncertainty. The federal government, through the GSEs and the FHA, is currently accounting for nearly all mortgage credit flowing to home buyers and rental properties. Lowering the loan limits will only further restrict overall mortgage liquidity in the marketplace and place further downward pressure on home prices.
Talking Points:
- Urge your members of Congress to support immediate efforts to extend the current loan limits for Fannie Mae, Freddie Mac and the FHA;
- A drop in these mortgage loan limits would reduce home prices in major markets all across the country;
- This is not the time to reduce housing demand and exacerbate the current housing downturn.
- Call Your members of Congress at (866) 924-NAHB (6242);
- Write your members of Congress at www.capitolconnect.com/builderlink.
Subscribe to:
Posts (Atom)