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Posts Tagged ‘galante’

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)

Galante finally Approved to Lead FHA

January 2nd, 2013 Comments off

NationalMortgageNews reports over a year after the Senate Banking Committee voted to send Carol Galante’s confirmation to the full Senate as Commissioner of the Federal Housing Administration (FHA), the Senate voted 69-24 to confirm her appointment Sunday during a special session dealing with the fiscal cliff controversy. As MHProNews reported Dec. 14, 2011, Sen. Jim Demint, (R-SC), leveling charges at Ms. Galante of being short-sighted at a Senate Banking Committee hearing on her nomination, said, “We need people with a sense of urgency (italics added) about the need to turn things around and reduce our debt and avoid future bailouts.” Sen. Bob Corker (R-Tenn.), noting more needs to be done to repair FHA’s financially challenged single-family program, says as the confirmed commissioner Galante can now assemble her own staff and take more aggressive steps. The acting head of FHA since July 2011, she will also serve as a HUD assistant secretary.

(Photo credit: HUD GOV–Carol Galante)

Funding for Senior Affordable Housing

December 24th, 2012 Comments off

The Department of Housing and Urban Development (HUD) announces it has awarded $26 million in grants to the owners of non-profit owners of multi-family housing developments to convert their units into dwellings outfitted to accommodate the needs of the elderly seeking to age in place. With funding from HUD’s Assisted Living Conversion Program, the goal is to provide seniors who prefer to live independently but need assistance in the activities of daily living—dressing, eating, bathing, etc., much like what is provided in an assisted living facility. MHProNew has learned the 11 facilities represent nine states. As HUD’s Assistant Secretary for Housing Carol Galante says, “ We’re getting older as a nation and with that demographic shift, there is a growing demand for affordable housing that will allow our seniors to live independently in their own homes.”

(Photo credit: BloombergBusinessWeek)

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)

HUD Suspends MHCC Activities

May 17th, 2012 Comments off

Following HUD’s suspension of the Manufactured Housing Consensus Committee (MHCC) Administering Organization (AO) services by the National Fire Protection Association (NFPA) because of HUD’s failure to pay the NFPA, the Manufactured Housing Association for Regulatory Reform (MHARR) sent a letter to Carol Galante, HUD Assistant Secretary-Federal Housing Commissioner. In reminding Ms. Galante of their meeting last fall in which the importance of the MHCC as part of the Manufactured Housing Improvement Act of 2000 was stressed for proper operation of the MH program, MHARR President Danny Ghorbani reiterates HUD’s disregarding the role of the MHCC as intended by Congress. He says, “…the indefinite suspension of all MHCC activities threatens to return the program to the type of closed door, unaccountable and non-transparent regulatory practices that Congress sought to end through the reforms of the 2000 law.”

(Image credit: Wikipedia Commons)

MHI Sluggers come to Louisville, Part I

January 16th, 2012 Comments off

In speaking to a packed room at the Louisville Manufactured Housing Show Jan. 12, Joe Stegmayer, CEO of Cavco/Fleetwood and MHI Chairman told attendees about the ongoing efforts of MHI to advance the Industry’s agenda in Washington. Stegmayer spoke of the critical nature of involvement by state associations, because “all politics are local.” Stegmayer said MHI and MHARR have been working together on some issues coming out of Washington. Both organizations participated in a conference call Nov. 22, 2011 with Federal Housing Authority (FHA) Commissioner Carole Galante and Housing and Urban Development (HUD)’s program manager Henry Czauski. They discussed tight credit, a non-career administrator for the MH program, and representation on the Manufactured Housing Consensus Committee (MHCC). Stegmayer said he hopes they can work even more closely with each other in the days to come. He said MHI is carefully looking for a replacement for Thayer Long, and suggestions on a possible replacement should be sent to jboehlert@mfghome..org. Sources tell MHProNews that the goal is to have a replacement for Thayer Long in place on or before March 2012. Some of the biggest names in the Industry were in attendance for Stegmayer’s address, along with a healthy dose of ‘mom and pop’ operators who make up the majority of the players in the Manufactured Housing Industry today.

(Photo credit: MHProNews)