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Posts Tagged ‘commissioner carol’

FHA Bailout may be Impending—Price Tag Nearly a Billlion

September 26th, 2013 Comments off

Word is making the rounds the Federal Housing Administration (FHA) will need a U. S. Treasury bailout when the fiscal year ends, as HousingWire has learned from a report by Reuters. There was a suggestion several months ago from FHA and the White House of a possible need for a $943 million bailout—FHA Commissioner Carol Galante said the funds may be required at some point. Rep. Scott Garrett, R-N.J., wrote, “For several years now, President Obama has kicked the can down the road while the Federal Housing Administration’s (FHA) fiscal position continues to worsen. This bailout would require no congressional action, and that’s a problem. The PATH Act, recently passed by the House Financial Services Committee, will reform our housing finance system and get the FHA back on track to prevent future bailouts.” As MHProNews has learned, HUD did not immediately comment on the report.

(Image credit: HousingWire)

FHA may need Bailout After All

April 10th, 2013 Comments off

For the first time in the history of the Federal Housing Administration (FHA), with its mortgage fund a minus $13.5 billion, the agency may need a government bailout by October, as HousingWire tells MHProNews. FHA Commissioner Carol Galante said, “The President’s budget projects that FHA may need a $943 million credit from the U.S. Treasury in October to make certain sufficient reserves are on hand today to cover projected losses over the next 30 years. FHA is taking every appropriate action to reduce the likelihood that such assistance is needed.” The agency may not make a final decision until Sept. 30, and attributes the financial stress to loans insured up to 2009, and to reverse mortgage programs. Housing and Urban Development (HUD) Secretary Shaun Donovan says the projected $13.6 billion shortage in capital reserves has been reduced to $943 million as a result of FHA recovering older loans, increasing some premiums, and making changes to the reverse mortgage program.

(Image credit: HUD-Gov)

FHA Bail-Out? 50-50 Odds

February 19th, 2013 Comments off

Federal Housing Administration (FHA) Commissioner Carol Galante, telling the House Financial Services Committee her agency will not likely need Treasury assistance this year, says the FHA has raised its insurance premiums five times since 2009, is raising them again April 1, and is issuing new regulations to reduce losses. The Government Accountability Office (GAO) has the FHA in its sights of “high risk” government programs, and House Financial Services Committee chairman Jeb Hensarling, R-Texas, says FHA’s designation as a high risk is not surprising. “We know the FHA is broke and is quickly approaching bailout-broke.” There are 734,650 seriously delinquent loans in its portfolio, and independent auditors estimate FHA will have to absorb $60 billion in claims by the end of FY 2014, most of which are on loans originated in those underwater days of FY 2007 through FY 2009. However, refinancings fourth quarter year-over-year doubled, totaling $32.7 billion in Q4 compared to $15.4 billion in the same quarter of 2011. FHA is refinancing 50,000 current FHA borrowers a month; and the Congressional Budget Office (CBO) says after updating its estimates, FHA took in $4 billion more than originally estimated. As nationalmortgagenews tells MHProNews, mortgage consultant Brian Chappelle says, “FHA is endorsing the best loans in its history.”

(Image credit: CNNMoney)

FHA to Lenders: Pay Hurricane Isaac Claims Now!

September 25th, 2012 Comments off

MHProNews has learned the Federal Housing Administration (FHA) issued a reminder to approved FHA lenders to promptly release hazard insurance funds to disaster victims of Hurricane Isaac, as per loan documents. The Mortgagee Letter says in the past some lenders used hazard insurance proceeds to pay off the mortgage, leaving the homeowners no funds to rebuild homes and lives. FHA’s Acting Commissioner Carol Galante says, “FHA Lenders are always required to follow our guidance and, particularly following a devastating disaster like Hurricane Isaac, it is important that FHA take affirmative steps to ensure that is the case.” The lender must be listed as “Loss Payee,” which protects the lender, but also ensures proceeds are available once rebuilding of the home begins. For the full HUD press release, click here.

(Photo credit: Huffington Post/Getty)

MHARR to HUD: Respond to Affordable Housing Need, not Regulators

July 25th, 2012 Comments off

The Manufactured Housing Association for Regulatory Reform (MHARR), in its continuing attempts for the Department of Housing and Urban Development (HUD) to fully and properly implement the Manufactured Housing Improvement Act of 2000 which especially impacts the industry’s smaller businesses, sent a letter July 19, 2012 to HUD Assistant Secretary for Housing-Federal Housing Commissioner Carol Galante suggesting: The Secretary reject the pending “conditional” federal sprinkler standard; subject expanded in-plant regulation to Manufactured Housing Consensus Committee (MHCC) review and rule making; HUD should reduce funding for the program monitoring contract and allocate resources to the State Administrative Agencies (SAAs); and HUD should finalize action on an “On Site Completion” rule. MHProNews notes, as MHARR has asked repeatedly, that HUD make manufactured housing a priority in response to the need for affordable housing in these United States. For the complete letter, click here.

(Image credit: MHARR)