Posts Tagged ‘NationalMortgageNews’

Bill to Use Section 8 Vouchers to Buy Manufactured Home Signed by President Obama

August 5th, 2016 Comments off

mfg home credit mhpronews postedDailyBusinessNewsMHProNewsFollowing up on the recent Senate passage of a bill that passed in the House in February – The Housing Opportunity through Modernization Act (HOTMA), posted on MHLivingNews and picked up hundreds of mainstream media outlets and advocacy sites – President Obama signed that bill it into law, as expected.  The bill willl allow Section 8 vouchers to be used for the purchase of a manufactured home (MH),

Currently, the vouchers can be used only for renting an MH, but the new law will allow those who qualify for Section 8 housing to use the vouchers for mortgage payments, property taxes and insurance for the entire year. The goal is to enable those of limited means to become homeowners, according to nationalmortgagenews.

A coalition of advoacy groups, including manufactured housing, were instrumental in the passage of the act. Lesli Gooch, from the Manufactured Housing Institute (MHI), said public housing agencies and HUD need to reach out to families to make them aware of this program; and work with lenders, including state housing finance agencies and the Rural Housing Service (RHS) to make sure lenders will honor the vouchers.

RHS currently finances MH only if the home is secured by land, or they will lend if the home is on a 99-year lease. “However, USDA (United States Department of Agriculture) is conducting a pilot in Vermont, New Hampshire and Oregon that allows borrowers to lease land for two years longer than the mortgage term,” according to an RHS spokesman.

Sponsored by Reps. Blaine Luetkemeyer, R-Mo., and Emanuel Cleaver, D-MO., the bill also authorizes the USDA to develop a direct endorsement program for the RHS whereby private lenders can approve loans. This will expedite the loans since the staffing at RHS has been diminished, and each loan must be approved by the agency.

The law further includes reforms to the Federal Housing Administration (FHA) condominium program.  Learn more at the link here##

(Photo credit: MHProNews-manufactured homes)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

CFPB Tries to Clarify Know Before You Owe, but Lenders Still See Glitch

July 30th, 2016 Comments off

  mortgage app  housingwire credit postedDailyBusinessNewsMHProNewsIn an attempt to provide more clarity to lenders on the Consumer Financial Protection Bureau(CFPC)’s “Know Before You Owe” mortgage disclosure rule, the agency has proposed “additional tolerance provisions, clarified a partial exemption for housing finance agencies, extended the rule’s coverage to all cooperative units, and provided more clarity about privacy and the sharing of information,” according to nationalmortgagenews.

However, the proposed rule did not clear up “technical” errors in mortgage disclosures, leading some investors earlier this year to refuse to purchase loans because the CFPB could not guide them in curing these errors. The mortgage industry has stated compliance is nearly impossible because there are hundreds of variables to consider on the disclosure form.

The CFPB, noting it cannot address every concern, said it “would not be practicable without substantially undermining incentives for compliance with the rule” and that it “would be extraordinarily complex,”according to Richard Horn, a former CFPB attorney.

CFPB Director Ricahrd Cordray stated, “Our proposed updates will clarify parts of our mortgage disclosure rule to make for a smoother implementation process.”

MHProNews understands lenders seek certainty. If there is a problem that is not addressed, causing lenders to turn away, borrowers, lenders and the economy all lose.

Public comment is open until Oct. 15 on the proposed amendments. ##

(Image credit: housingwire)

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One Percent Down Could Put You in a Home

July 25th, 2016 Comments off

Mortgage  andyenstallblog  credit postedDailyBusinessNewsMHProNewsAccording to nationalmortgagenews, Chicago-based retail originator Guaranteed Rate has been offering 1% down mortgages through a new nationwide program. Called Double Match, the additional two percent is available through a down payment assistance program, and is completely forgivable for qualified borrowers.

MHProNews understands the plan is applicable to condos, town homes and single-family homes. It could not be immediately determined if the program is also available for manufactured homes.

While Guaranteed Rate will allow borrowers to include it with a mortgage credit certificate for tax purposes, the program can be applied to homes of $417,000 or less. Borrowers are required to have a FICO score of 680 or better to qualify. Income requirements will vary by locale. ##

(Photo credit: andyenstallblog)

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425,000 more Underwater Borrowers now Floating again

July 12th, 2016 Comments off

underwater_mortgage__news365_today_credit postedDailyBsuinessNewsMHProNewsWhile the negative equity rate is five times higher than it was in 2004, during the first quarter of this year 425,000 borrowers who were once underwater regained equity, according to what Black Knight Financial Services tells nationalmortgagenews, leaving just 2.8 million borrowers in negative equity.

Black Knight’s Home Price Index has documented 48 consecutive months of annual home price appreciation, and that 38 million borrowers have at least 20 percent equity in their homes, with each borrower averaging $116,000 in tappable equity. MHProNews has learned that overall tappable equity grew $260 billion in Q1 2016.

It seems borrowers are still being prudent when it comes to drawing upon that equity, though,” said Ben Graboske, data and analytics executive vice president at Black Knight, in a news release Monday. “Just $20 billion in equity was tapped via cash-out refinances in 1Q 2016 — roughly one-half of 1% of total available equity. Even so, cash-outs still accounted for some 42% of all refinance activity in 1Q 2016.”

While fewer than 1% of all active mortgages were made to borrowers severely delinquent on student loans, Black Knight reported that borrowers severely delinquent on student loan debt were five times more likely to be delinquent on their mortgages than those who are current on student loan debt. ##

(Image credit: news365today–home beginning to float after being underwater)

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Home Prices Gain Nearly Ten Percent

July 7th, 2016 Comments off

home_pr_increase___etftrends_creditAccording to what CoreLogic’s Home Price Index, home prices posted a year-over-year gain in May of 5.9 percent, and an increase over April, 2016 of 1.3 percent, above CoreLogic’s expectations of an 0.9 percent rise.

CoreLogic Chief Economist Frank Nothaft said year-over-year home prices have risen by 5-6 percent for 22 consecutive months, as reported by nationalmortgagenews. He added, “The consistently solid growth in home prices has been driven by the highest resale activity in nine years and a still-tight housing inventory.”

In May, Oregon and Washington posted the highest price increases, 11% and 10%, respectively, while three eastern states experienced depreciation: Connecticut 0.9%, New Jersey at 0.2% and Pennsylvania at 0.1%.

MHProNews has learned CoreLogic forecasts an increase of home prices in June as compared to May of 0.8%, and a 5.3% increase year-over-year in May of 2017. ##

(Home prices rising-credit=etftrends-posted DailyBusinessNewsMHProNews)

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Housing Market has more Room for Expansion: Fitch Ratings

June 21st, 2016 Comments off

housing_recovery__globest.com__creditAccording to the 2016 U. S. Housing Forum report from Fitch Ratings, the housing market’s current upswing should last for two more years, as reported by nationalmortgagenews to MHProNews.

Using single-family starts as a proxy for overall housing metrics, and calculating that single-family starts have risen in five of the last six years, Fitch analysts forecast the expansion of the housing market for two more years based on an historical pattern.

The report said the average length of an upswing market is 4.3 years, when excluding the cycle preceding the most recent financial crisis. That cycle lasted about 14 years of expansion followed by five to six years of contraction.

Since 2012 single-family starts have risen consistently, and although it has not been as sizeable as in previous housing cycles, 2015 saw a 10.3 percent increase. Last year’s production hit 1.1 million properties, which included 720,000 single-family homes, short of the average of one million starts which the commentator, Jacob Passy, indicates the current upcycle has room to continue.

Meanwhile, First American Financial Corp.’s Potential Home Sales model for May indicates the market for existing home sales is under performing its potential by 2.8 percent, as they fell short of the seasonally adjusted annual rate (SAAR) of 156,000 in May, although an improvement over the 232,000 shortfall in April. ##

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Homebuyers Save Big with Down Payment Assistance Programs

June 13th, 2016 Comments off

apartment quest credit   apart for rentAccording to a joint report from RealtyTrac and Down Payment Resource, nationalmortgagenews tells MHProNews down payment assistance programs can save homebuyers on average $5,965 on the down payment and $11,801 over the course of a loan’s life, totaling $17,766.

Having studied 513 counties across the nation, the report states the money saved represents 41 percent of a year’s wages when compared to buyers that do not use the assistance.

The amount of assistance provided from down payment assistance programs across the country averaged $12,434, nearly double the average three percent down on a median-price home, nationwide.

In 18 percent of counties in the New York City, Washington, D. C., Salt Lake City and Baltimore metropolitan areas, down payment assistance was less than the three percent.

In Kauai County, Hawaii, homebuyers can save $80,148 over the life of a loan when compared with not participating in a down payment assistance program, representing the largest savings possible.

The Los Angeles, San Francisco, Miami, New Orleans and Seattle metropolitan areas also offer savings of over $50,000 for the life of a loan for participating in a down payment assistance program. ##

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Lending to Single-family Home Builders Rises in Q1 2016

June 8th, 2016 Comments off

mortgage    andyenstallblog  creditA new report by the National Association of Home Builders (NAHB) states that banks increased their lending to single-family home builders by $2.3 billion in Q1 2016, almost 18 percent higher than lending in the same period one year ago. The NAHB’s analysis of of recent Federal Deposit Insurance Corp. (FDIC) numbers indicates that as of March, residential construction loans rose to $63.2 billion, as nationalmortgagenews informs MHProNews.

NAHB Chief Economist Robert Dietz says the 18 percent increase is consistent with the trade group’s forecast of 806,000 single-family starts this year, an increase of 13 percent from 2015, adding, “Lending is still in the easing territory but the rate of that easing has been slowing in the past few quarters.” He notes that the supply of available lots remains a stumbling block for small and midsize builders.

FDIC data indicates outstanding acquisition, development and construction loans, which includes commercial building, multifamiy and single-family project loans totaled $284.2 billion as of the end of the first quarter, an increase of 14 percent over the same period last year. ##

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Housing Counseling Advisory Committee Created by HUD

June 2nd, 2016 Comments off

HUD logoIn an effort to determine more methods of providing counseling for new homebuyers and troubled homeowners, the U. S. Department of Housing and Urban Development (HUD) has created a new Housing Counseling Federal Advisory Committee as mandated by the Dodd-Frank Act.

Made up of three representatives from each of the four mortgage, real estate, consumer and housing counseling sectors, the committee is charged with developing strategies to offer counseling services at the community level, as nationalmortgagenews tells MHProNews.

Counseling can address fair housing issues, rental assistance, pre-purchase counseling, finding a mortgage lender and putting together a household budget.

Senior Loan Officer Pamela Marron with Innovative Mortgage Strategies, Inc. in Florida, said, “I’m in Florida, the land of underwater homes. I would tell them what is really happening at ground zero. And I am expecting the other members will have similar stories. We have a good diverse group and I am excited about that.”

Meg Burns, a former HUD official who has been selected to serve on the advisory committee, said, “It really goes well above and beyond what must people are familiar with as a result of the foreclosure crisis.” ##

(Image credit: Department of Housing and Urban Development)

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Shortage of Affordable Housing Could Severely Impact 40% of Boomers

May 25th, 2016 Comments off

baby_boomers____howstuffworksWith 8,000 to 10,000 Baby Boomers hitting the 65 mark daily, a task force from the Bipartisan Policy Center, arguing that there is a link between housing and health that will impact the well-being of the country’s senior population, is urging the federal government to spur investment in affordable housing for seniors.

Comprised of former Department of Housing and Urban Development Secretary Henry Cisneros, former HUD Secretary and U.S. Senator Mel Martinez and former U.S. Representatives Allyson Schwartz and Vin Weber, the task force is recommending expansion of the Low-Income Housing Tax Credit (LIHTC) program to finance the production and preservation of affordable rental units.

As nationalmortgagenews tells MHProNews, the group recommended funding for Section 202, which provides rental assistance for seniors, and that LICHTs be used to attract funding from health care programs for services that will be needed by an older population.

The center reports in 2013 there were only 4.3 million rental homes available to extremely low-income households, but a need for housing for 11.2 million households, leaving a shortage of 6.9 million homes. With approximately 40 percent of seniors over 62 estimated to have assets of under $25,000 to sustain them over the next 20 years, the lack of affordable housing threatens to leave many possibly homeless.

Affordable housing is the glue that holds everything together,” Martinez, who co-chaired the task force, said in a news release. “Without access to affordable housing and the stability it provides, it becomes increasingly difficult to provide home and community-based supportive services that can enable successful aging.”

In order to make the necessary changes to accommodate health and accessibility needs, the task force suggests a new Modification Assistance initiative be implemented by the federal government, in conjunction with local and state governments, to utilize tax credits, grants and forgivable loans to assist the aging population.

Additionally, the group stated that HUD should create lending products that allow elderly borrowers access to home equity.

As MHProNews understands, this scenario could be an ideal situation for HUD to promote the affordable, quality manufactured housing it so vigorously regulates. ##

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