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Carol Galante

Carol Galante to Resign at Year's End

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Carol Galante, one of President Barack Obama’s top housing specialists and commissioner of the Federal Housing Administration (FHA), has announced that she will step down at the end of the year from her position. Galante will be accepting a private sector job at UC Berkley in California, the school in which she received her Master of City Planning degree from. At Berkley, she will serve as director of the Berkeley Program in Housing and Urban Policy, and co-chair the Fisher Center on Real Estate Policy Advisory Board.Click to continue

FHA Seeking Feedback for Single-Family Handbook


As part of a broader effort to develop a handbook which will be a single, authoritative source of policy for FHA-approved lenders, the Federal Housing Administration (FHA) posted two new handbook sections on The Drafting Table for feedback. The Handbook is part of FHA’s “Blueprint for Access,” which is intended to make easier for FHA lenders to comply with Single-Family requirements and encourage lending to creditworthy borrowers across the credit spectrum."Click to continue

HUD and FHA Channeling Resources to Preservation of the American Dream

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Federal Housing Administration (FHA) Commissioner Carol Galante and U.S. Department of Treasury Secretary Jacob J. Lew announced the Obama Administration's efforts to continue helping struggling homeowners avoid foreclosure, increase access to affordable rental options and expand access to credit for borrowers.Click to continue

HUD Decision Abandons Relief for Non-Borrowing Surviving Spouses


When a company like Bank of America causes a problem or harms individuals, resulting in a loss of equity, they typically get in trouble. If General Motors Company (GMC) releases a truck with faulty brakes, whether those brakes were farmed out to a third-party or not, GMC recalls the vehicle and gets in front of the issue. If these cases typically run true, then why hasn’t the U.S. Department of Housing & Urban Development (HUD) come under fire for harming elderly individuals who have taken part in a reverse mortgage?Click to continue

FHA Publishes Guidance on Avoiding HECM Deception


The Federal Housing Administration (FHA) has published a Mortgagee Letter reminding lenders participating in the agency’s Home Equity Conversion Mortgage (HECM) Program to make certain senior borrowers are fully informed of all their options when applying for reverse mortgages. FHA’s Mortgagee Letter also reinforces the agency’s prohibition against misleading or deceptive advertising and that this prohibition extends to misleading or deceptive descriptions of the HECM program.Click to continue

FHA Releases "Blueprint for Access" to Expand Credit for Underserved Borrowers


The Federal Housing Administration (FHA) has issued its “Blueprint for Access” outlining the additional steps the agency is taking to expand access to credit for underserved borrowers.  These steps include encouraging a broader use of housing counseling. This week, HUD will publish a notice in the Federal Register for the Homeowners Armed with Knowledge (HAWK) pilot program to further incorporate housing counseling into the home buying process for borrowers using FHA insured financing.Click to continue

FHA Expands e-Signature Authority

eSignature Credit: Siri Stafford

The Federal Housing Administration (FHA) has announced that it is granting expanded authority to lenders to accept electronic signatures (e-Signatures) on documents associated with mortgage loans. The new policy allows e-Signatures on origination, servicing, and loss mitigation documents, as well as FHA insurance claims, real estate-owned (REO) sales contracts and related addenda. Current FHA policy allows for electronic signatures only on third-party documents such as sales contracts and other documents not controlled by the lender.Click to continue

FHA Still Not Out of the Red: Mutual Mortgage Insurance Fund Gains $15 Billion Over Last Year

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The U.S. Department of Housing & Urban Development (HUD) has released its annual report to Congress on the financial condition of the Federal Housing Administration (FHA) Mutual Mortgage Insurance (MMI) Fund. The independent actuarial report shows that FHA’s Mutual Mortgage Insurance Fund (MMIF) has gained $15 billion dollars in value over the last year and now stands at negative $1.3 billion. The current capital ratio is negative 0.11 percent.Click to continue

FHA Publishes Revised Lending Guidelines


The Federal Housing Administration (FHA) published revised guidelines for lenders when they manually underwrite mortgage loan applications of borrowers applying for FHA-insured mortgages. This change will improve a lender’s ability to objectively consider a borrower’s risk and reduce additional credit requirements or ‘overlays’ that exceed FHA’s own lending standards.Click to continue

FHA's 2014 Loan Limits to Change in Nearly 650 U.S. Counties

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The U.S. Department of Housing & Urban Development (HUD) announced that it will implement new FHA single-family loan limits on Jan. 1, 2014, as specified by the Housing and Economic Recovery Act of 2008 (HERA). The current standard loan limit for areas where housing costs are relatively low will remain unchanged at $271,050. The new national-ceiling loan limit for the very highest cost areas will be reduced from $729,750 to $625,500. Areas are eligible for FHA loan limits above the national standard limit, and up to the national ceiling level, based on median area home prices.Click to continue