Mortgage Money Was More Available in January

It was slightly easier to get a home mortgage loan in January, according to the latest data from the Mortgage Bankers Association, continuing the two-year trend of slowly loosening credit standards. The MBA’s Mortgage Credit Availability Index (MCAI) rose 1.8 percent last month to 117.8 percent. An increase in the index means lenders are relaxing their lending standards whereas a decrease in the index indicates the lending climate is becoming more exclusive. For reference, the index was benchmarked Read more [...]

Existing Home Sales Rise for Third Straight Month

Sales of existing U.S. homes rose for the third month in a row in June, accompanied by increases in both price and inventory, according to the National Association of Realtors, as low interest rates continued to boost affordability. Total existing-home sales grew 2.6 percent in June to a seasonally adjusted annual rate of 5.04 million, up from 4.91 million in May, but the new pace is down 2.3 percent from the previous year. Inventory climbed 2.2 percent in June to a total of 2.30 million existing Read more [...]

FHA Loans Could Be Your Solution to Rising Rates

After bumping along at record lows for several years, mortgage interest rates have finally started rising again. And they are making quick progress, having jumped up an entire percentage point in just a few months. During the latest week, the average rate on a 30-year fixed rate mortgage rose to 4.58 percent, up from 4.40 percent the week before, according to mortgage finance company Freddie Mac. That is the highest level in over two years. “Fixed mortgage rates continued to follow bond yields Read more [...]

FHA Delinquencies Continue to Rise

Home sales have been stabilizing, mortgage interest rates remain at rock bottom, and some regions of the country are even seeing home price growth. Yet there remains at least one disturbing sore spot in the housing market: the rising number of FHA-backed mortgage delinquencies. The Federal Housing Administration stepped in to make loans to many of the nation's lower-income and first-time home buyers during the past several years as private lender fled the scene. It seems, however, that there was Read more [...]

FHA to Sell Off Delinquent Loans

In order to raise a bit of cash and to help some borrowers avoid foreclosure, the Federal Housing Administration announced a plan today to sell thousands of its most soured mortgage loans. The FHA has backed a large share of U.S. home loans since private lenders all but disappeared from the market after the housing bubble popped. Currently, it insures about $1.1 trillion in mortgages, and of those 9 percent or 700,000 are in default. As the agency has fielded losses from these toxic loans, Read more [...]

FHA Will Soon Tack on New Mortgage Fees

Federal Housing Administration mortgage loans are about to get a bit more expensive. In the coming months the FHA will be raising its fees for mortgage insurance and lowering the amount of closing costs the seller can pay for the buyer. These new changes could make things difficult for first-time buyers and others in many high-priced areas around the country. Currently the FHA is financing about 25 percent of all home loans, up from 3 percent during the housing boom. In some metropolitan areas Read more [...]

FHA to Become Next Government Bailout?

The Federal Housing Administration (FHA) is coming under fire for the shaky state of its finances and the chance that it may need government money to keep it afloat in the next year. The FHA, which now guarantees about a third of all new mortgages in the U.S., is required by law to hold 2 percent of its capital as reserves to protect the company against losses from soured loans. The housing crash took a heavy toll on those reserves and the FHA now only has 0.24 percent in reserves, down even from Read more [...]

High FHA Loan Limits Means Wealthier Borrowers Benefit

The Federal Housing Administration (FHA), an agency established during the Great Depression, was designed to help lower income borrowers and first-time homebuyers purchase homes. FHA loan limits were increased in 2008, as a result of the nation's credit crunch, when foreclosures were driving the price of homes into the ground all over the country. Home loan lenders became reluctant to lend mortgages, so lawmakers increased the FHA's, Fannie Mae's, and Freddie Mac's limits to guarantee loans and Read more [...]

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on November 8th 2011 in Mortgage News

FHA Serious Loan Delinquencies Fall Slightly in February

This week the FHA (Federal Housing Administration) is reporting that their serious mortgage delinquencies are falling. The rate dropped from 9.4% in January when 558,944 customers were seriously delinquent to 9.2% in February, decreasing the number of delinquent customers to 553,929. These numbers include those mortgages that are in foreclosure and bankruptcy. While the percentage change is small it is still seen as promising and is the lowest rate since last August. The FHA has been under scrutiny Read more [...]

FHA Rule Changes – Where Will Poor Credit Buyers Turn Now?

The Federal Housing Administration has been taking a lot of flack lately from government and market officials for letting its Capital Reserves fall below the federally mandated rate of 2 percent. Now Congress is investigating whether it needs to force the FHA to make some major changes to its mortgage loan programs. FHA home loans have traditionally been a source of funding for first-time homebuyers and those with lower credit scores or little down payment money. When the credit markets crashed Read more [...]