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Tag Archives: House Flipping

Independent Lenders Must Establish Anti-Money Laundering Programs

The Financial Crimes Enforcement Network (FinCEN) is expanding its reach. The agency, which in the past has required banks to establish anti-money laundering programs and notify FinCEN of suspected fraud through suspicious activity reports (SARs), will now require non-bank residential mortgage originators and lenders to do the same. FinCEN has noticed recently that many SARs it has received from banks reported suspicious activity on loans originated by independent lenders.

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FHA Waives Anti-Flipping Rule Through Year-End to Speed REO Sales

The Federal Housing Administration (FHA) is extending the temporary waiver of its property anti-flipping rule. FHA rules typically prohibit insuring a mortgage on a home owned by the seller for less than 90 days. In 2010, however, the agency waived this regulation, and later extended the waiver through 2011. This latest extension permits the use of FHA-insured financing for HUD-owned and bank-owned properties, no matter how long the homeowner has held the title, through December 31, 2012.

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Fed: House Flipping Led to Deeper Housing Collapse

There's been much debate over the root causes of the housing meltdown that catapulted the nation into the worst financial crisis in 80 years. A new report from the Federal Reserve focuses on the sharp run-up and subsequent collapse in housing prices during the 2000s. It concludes that real estate investors who used mortgage credit to purchase multiple properties played a larger role in fueling the housing bubble than previously recognized, pushing prices up during the boom and then defaulting in large numbers when prices began to head south.

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Investors Increase Market Share, Especially in Distressed Sector

Investors are making up an increasing share of home purchase transactions, especially in the distressed sector, according to an industry report. In October, investor purchases accounted for 22.3 percent of transactions, in keeping with the last three months during which the rate has remained above 20 percent. At the same time, distressed property transactions grew to take up a larger portion of the market. Investors are seeing profit potential in homes that may need repair because rents are steadily rising.

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