Tag Archives: FHA

HomeFree-USA recently revealed its success in assisting struggling homeowners by using HOPE LoanPort, a Web-based system to submit home retention applications to mortgage servicers. HomeFree-USA, which oversees a network of 65 housing counseling agencies, endorses the HOPE LoanPort system for eliminating lost paperwork and reducing decision times on loan modification applications.

The U.S. House of Representatives has passed legislation to end the Federal Housing Administration's (FHA) Short Refi Program aimed at helping homeowners who owe more on the mortgage than their home is worth obtain a new FHA-insured loan with a reduced principal. In a 256 to 171 vote Thursday evening, the House approved the FHA Refinance Program Termination Act, the first of four bills targeting federal foreclosure mitigation programs.

HUD's Office of the Inspector General (OIG) reviewed more than 250 loans from 15 lenders and found that nearly half of those loans did not meet the Federal Housing Administration's (FHA) guidelines. The OIG launched Operation Watchdog in January 2010 to examine loans from the lenders and found areas of noncompliance, including misstatements of a borrower's income, liabilities, and credit history, which resulted in actual or expected FHA losses on default claims of more than $11 million.

While both the House and Senate seem to have similar ideas - that changes in foreclosure prevention are needed, and fast - the groups seem to have completely different takes on how to achieve those changes. This week members of a House committee reviewed proposals advocating for the termination of four foreclosure prevention programs and voted to send two of those proposals to the full House. Meanwhile, senators sent a letter to several government agencies, urging them to modify the very programs the House will consider terminating.

As the House prepares to debate on the future of the Federal Housing Administration's Short Refinance option, FHA Commissioner David Stevens implored House subcommittee members to give the program a chance. The program is a voluntary option for lenders to agree to offer principal write downs and restructure loans for underwater borrowers. Stevens said as of February 11, 23 FHA-approved lenders are participating in the program and 245 FHA case numbers have been requested, of which 44 loans have been endorsed.

The House Financial Services Committee voted Thursday to scrap two foreclosure relief programs - one that gives underwater homeowners a federal refinancing option through FHA's Short Refi Program, and a second that provides temporary assistance to unemployed homeowners through the Emergency Mortgage Relief Fund. The two bills now move to the full House for debate. The committee was also planning to consider two separate bills to end the Home Affordable Modification Program (HAMP) and HUD's Neighborhood Stabilization Program, but votes on these have been pushed to next week.

On Wednesday, a hearing was held by the Insurance, Housing and Community Opportunity Subcommittee to determine the fate of four federal foreclosure mitigation programs. The Home Affordable Modification Program (HAMP), HUD's Neighborhood Stabilization Program, the Federal Housing Administration (FHA) Refinance Program, and the Emergency Mortgage Relief Fund all have bills in play advocating for their termination. Witness testimony was mixed on whether the programs should continue or come to an end.

Rep. Spencer Bachus, chairman of the House Financial Services Committee, announced this week that he has scheduled a subcommittee hearing and full committee markup of four bills that will terminate what he says are ""failed and ineffective housing foreclosure programs."" On the chopping block are the Home Affordable Modification Program (HAMP), HUD's Neighborhood Stabilization Program, the Federal Housing Administration (FHA) Short Refi Program, and the Emergency Homeowner Relief Fund passed under the Dodd-Frank Act.

Stewart Lender Services, a nationwide provider of centralized origination, loss mitigation, and REO asset solutions for mortgage lenders and servicers, has announced three key partnerships that will allow the company to expand its service offerings. Stewart is collaborating with Inglet Blair, LLC, Spectrum Field Services, and Field Asset Services.

The percentage of distressed properties in home purchase transactions climbed to its highest level in nearly a year last month, according to an industry report released Tuesday. The distressed property index tracked as part of the report indicates that the share of sales transactions involving distressed homes climbed to 49.6 percent in January. Comments from real estate agents collected as part of the survey confirms the growing share of distressed properties, particularly in hard-hit markets.