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With the White House’s announcement of several new programs with struggling homeowners in mind, the FHA has a number of housing initiatives to implement over the next few years. Along with a new refi program that seeks to help out underwater non-FHA borrowers, a broad-based REO-to-Rental project has been announced, which will be headed by the FHFA, HUD and Treasury. The latter is the result of the Administration asking for feedback on last year’s RFI process, which should be politically advantageous. So as I continue to monitor these changes I ask myself with investors fund the programs that FHA say they will do??? Not seeing this yet, but Mike King and azmortgageinfo always stay tuned to new programs, investors and ways to help home owners and buyers. So if you need help with a mortgage or just questions visit us at www.azmortgageinfo.com or email Mike at mike@azmortgageinfo.com. Lets read more:
The task ahead is enormous, however, and many lawmakers and industry professionals are unsure if the FHA is up to yet another challenge of this scale. It would mean taking on riskier borrowers, which raises the question of Congress authorizing the Administration to increase LTV caps, how OMB will “score” the proposal, and if new bank fees and higher premium revenue would compensate for the added cost. Cost would be a key factor here, as the White house has stressed that any housing-related programs it may implement will not add to the deficit. Adding to the uncertainty is the FHA’s actuarial soundness, which has taken a significant hit from three consecutive years of declining home prices.
At any rate, the specifics of any program remain uncertain, and the mortgage industry will continue to monitor the progress of legislation. Certainly the FHA has come under scrutiny by having an under-capitalized insurance fund, and many feel that the agency is not being held accountable under the same rules and regulations that others agencies, and private companies, are forced to adhere to.
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