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Posts Tagged ‘donovan’

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)

Congress to HUD: Where Have You Been Since 2000?

April 25th, 2012 Comments off

The Manufactured Housing Association for Regulatory Reform (MHARR) reports a joint letter dated April 17, 2012 from the chairmen of the House Financial Services Committee and the Housing, Insurance, and Community Development Subcommittee to HUD Secretary Shaun Donovan seeks follow-up from HUD regarding its implementation of the Manufactured Housing Improvement Act of 2000. MHProNews.com understands the letter stems from a field hearing Nov. 29, 2011 in Virginia and a subsequent oversight hearing by the Subcommittee Feb. 1, 2012, both of which saw witnesses from various parts of the industry highlight HUD’s failure to implement certain provisions of the Act of 2000. The letter says, in part, ”The 2000 law is intended to   benefit both the manufactured housing industry and homeowners by providing a more timely method of establishing the standards to which manufactured homes are built.” Noting the role of the Manufactured Housing Consensus Committee (MHCC) in advising HUD, the letter questions why HUD has not taken action on 135 of the 185 recommendations made by the Manufactured Housing Consensus Committee since 2004, and asks for a written explanation. MHARR says, “The letter is a clear indication to HUD, the program management and regulators that the oversight hearing was not only not the end of this matter, but that Congress is serious about compliance with all of the reform provisions of the 2000 law that finally would definitively and officially identify manufactured homes as ‘housing’ for all purposes.”The letter is signed by Spencer Bachus  of the House Financial Services Committee and Judy Biggert of the Subcommittee on Housing, Insurance and Community Development.

(Image credit: U.S. Government)

2.0 HARP Applications Going Fast

April 20th, 2012 Comments off

According to Housing and Urban Development (HUD) Secretary Shaun Donovan, 400,000 HARP (Home Affordable Refinance Program) 2.0 applications have been picked up by five of the largest loan servicers. HARP 2.0 is targeted to underwater borrowers with Fannie Mae and Freddie Mac loans. NationalMortgageNews tells MHProNews.com President Obama has proposed a new refinance program aimed at the three million borrowers who are up-to-date on their payments but cannot refinance because of negative equity. For this effort the FHA would create a separate mortgage insurance fund, but this would require congressional approval, and Republican lawmakers are apt to turn back this measure.

(Image credit: MoneyControl)