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Home Loan Limits Raised in Over 3,000 U.S. Counties

December 14th, 2018 Comments off

FHAHomeLoanLimitsRaisedOver3000USCounties

The Federal Housing Administration (FHA) announced late today that loans limits for 2019 will be raised for most part of the nation.

 

As manufactured housing industry veterans know, qualifying placements can allow a HUD Code home, or a modular home, to be financed with FHA insurance on the loan.

The increases are for both regular – forward mortgages, and also for HECM or so-called ‘reverse’ mortgages too.  The full HUD/FHA statement to the Daily Business News on MHProNews is as follows.

For additional details, industry professionals should contact an FHA approved lender conversant with manufactured home financing.

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HUD ANNOUNCES NEW FHA LOAN LIMITS FOR 2019

Loan limits to increase in more than 3,000 counties

 

WASHINGTON – The Federal Housing Administration (FHA) today announced the agency’s new schedule of loan limits for 2019, with most areas in the country to experience an increase in loan limits in the coming year. These loan limits are effective for FHA case numbers assigned on or after January 1, 2019.

 

 

FHA is required by the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008 (HERA), to set Single Family forward loan limits at 115 percent of median house prices, subject to a floor and a ceiling on the limits. FHA calculates forward mortgage limits by Metropolitan Statistical Area and county.

 

In high-cost areas of the country, FHA’s loan limit ceiling will increase to $726,525 from $679,650. FHA will also increase its floor to $314,827 from $294,515. Additionally, the National Mortgage Limit for FHA-insured Home Equity Conversion Mortgages (HECMs), or reverse mortgages, will increase to $726,525 from $679,650. FHA’s current regulations implementing the National Housing Act’s HECM limits do not allow loan limits for reverse mortgages to vary by MSA or county; instead, the single limit applies to all mortgages regardless of where the property is located.

 

Due to robust increases in median housing prices and required changes to FHA’s floor and ceiling limits, which are tied to the Federal Housing Finance Agency (FHFA)’s increase in the conventional mortgage loan limit for 2019, the maximum loan limits for FHA forward mortgages will rise in 3,053 counties. In 181 counties, FHA’s loan limits will remain unchanged. By statute, the median home price for a Metropolitan Statistical Area (MSA) is based on the county within the MSA having the highest median price. It has been HUD’s long-standing practice to utilize the highest median price point for any year since the enactment of the Housing and Economic Recovery Act (HERA).

 

The National Housing Act, as amended by HERA, requires FHA to establish its floor and ceiling loan limits based on the loan limit set by FHFA for conventional mortgages owned or guaranteed by Fannie Mae and Freddie Mac. FHA’s 2019 minimum national loan limit, or floor, of $314,827 is set at 65 percent of the national conforming loan limit of $484,350. This floor applies to those areas where 115 percent of the median home price is less than the floor limit.

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Any areas where the loan limit exceeds this ‘floor’ is considered a high-cost area, and HERA requires FHA to set its maximum loan limit ‘ceiling’ for high-cost areas at 150 percent ($726,525) of the national conforming limit. 

Based upon the volume of FHA endorsements in FY 2018, the following chart represents the number and share of counties where FHA loan limits are at the ceiling, floor and somewhere in between.

To find a complete list of FHA loan limits, areas at the FHA ceiling, areas between the floor and the ceiling, as well as a list of areas with loan limit increases, visit FHA’s Loan Limits Page

 

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That’s this evening’s “News Through the Lens of Manufactured Homes, and Factory-Built Housing,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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Proposed Death Blows to CFPB Put Forward

February 15th, 2017 Comments off
ProposedDeathBlowtoCFPBPutForwardcreditMortgageCompliaceMagazine-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: Mortgage Compliance Magazine.

Senator Ted Cruz (R-TX) and Rep. John Ratcliffe (R-TX) put forth legislation on Tuesday to abolish the Consumer Financial Protection Bureau (CFPB).

This legislation would give Congress the opportunity to free consumers and small businesses from the CFPB’s regulatory blockades and financial activism, which stunt economic growth,” said Cruz.

The pair of bills (S. 370 and H.R. 1031) would help advance Republicans’ broader Dodd-Frank reform efforts by tackling Title X of the law.

ProposedDeathBlowtoCFPBPutForwardcreditWikipediaJohnRatcliffe-postedtothedailybusinessnewsmhpronewsmhlivingnews

Rep. John Ratcliffe. Credit: Wikipedia.

The CFPB’s lack of accountability to the American people was quickly evidenced when – contrary to its name – it ended up hurting many of the very folks it was intended to help. While Sen. Cruz and I have been sounding the alarm on the CFPB’s federal overreach for some time now, I’m optimistic at our renewed chances of advancing this effort with a willing partner in the White House,” said Ratcliffe.

ProposedDeathBlowtoCFPBPutForwardcreditWashintonExaminerTedCruz-postedtothedailybusinessnewsmhpronewsmhlivingnews

Sen. Ted Cruz. Credit: Washington Examiner.

Don’t let the name fool you, the Consumer Financial Protection Bureau does little to protect consumers. During the Obama administration, the CFPB grew in power and magnitude without any accountability to Congress and the people, and I am encouraged by the actions President Trump has begun to take to roll back the harmful impacts of an out-of-control bureaucracy,” said Cruz.

In addition to the legislation from Cruz and Ratcliffe, Sen. Mike Rounds, (R-S.D.) introduced legislation that would, according to his office, “dismantle” the agency by denying it funding through the Federal Reserve, and preventing it from keeping any fines it collects from businesses.

A product of the ill-advised Dodd-Frank Reform Act, the CFPB is an unaccountable regulatory agency ran by unelected bureaucrats with no oversight from Congress,” said Rounds.

ProposedDeathBlowtoCFPBPutForwardcreditWikipediaMikeRounds-postedtothedailybusinessnewsmhpronewsmhlivingnews

Sen. Mike Rounds. Credit: Wikipedia.

No unchecked federal agency should have the power to dramatically alter the financial choices of consumers through the rules it promulgates. Dismantling the CFPB is but one step we can take to ease the regulatory burdens of Dodd-Frank, the cost of which continues to be handed down to American families. I look forward to working with my colleagues to roll back the CFPB’s power and prevent the agency from imposing any further harmful regulations.”

As Daily Business News readers are aware, the CFPB and Director Richard Cordray have been in the crosshairs of the Trump administration.

Even so, Cordray maintains that he plans to stay put.

 

According to the Washington Examiner, in a recent Wall Street Journal op-ed, House Financial Services Committee Chairman Jeb Hensarling, (R-TX), said, “It would not be possible to overcome a Democratic filibuster to abolish the bureau. Instead, the agency could functionally be terminated through a roundabout legislative process using a budget tool that provides for passing legislation with a simple majority in the Senate.

The bill introduced by Cruz and Ratcliffe is linked here.

The bill introduced by Rounds is linked here. ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.