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Posts Tagged ‘private lenders’

President Obama Discusses the U. S. Housing Market

August 7th, 2013 Comments off

In a session with Zillow CEO Spencer Rascoff, President Obama fielded housing-related questions coming in via social media. Noting the recession and corresponding drop in home values was unlike anything seen in many years, he said refinancing could save homeowners $3,000 a year, although the housing market, while recovering, remains soft. He said despite interest rates continuing their upward trend as the economy improves, there is a lot of pent-up demand for homes which will play out soon. While suggesting that Republicans and Democrats should get together to support the Home Affordable Refinance Program 3 (HARP), he also noted the long-term goal is to reduce the amount of lending being underwritten and guaranteed by the government, and encourage private lenders to re-enter the market. To help homeowners during the recession President Obama said the maximum home value that could be financed was increased. As housingwire informs MHProNews, he suggested listeners contact their congressional representative to support HARP 3.

(Image credit: firstbanktrust)

Fed Lending Reforms due Soon

July 9th, 2012 Comments off

azstarnet reports the two major mortgage market overseers in the federal government are trying to convince private lenders to ease up on lending restrictions that have become tighter than those required by Fannie Mae and Freddie Mac, which are under the jurisdiction of the Federal Housing Finance Agency, and the Federal Housing Administration (FHA), which administers low-cost loans. Saying a minor infraction in documentation can conceivably cost hundreds of thousands of dollars, lenders have adopted “overlay” rules adding extra fees, larger down payments , and requiring higher credit scores than the GSEs require. In addition, loan originators are unsure of the effect of upcoming Dodd-Frank regulations, and do not want to be charged with underwriting deficiencies after 2-3 years of a loan that has been on time. MHProNews.com has learned FHFA and FHA are expected to announce reforms soon.

(Image credit: Federal Housing Administration)