Posts Tagged ‘U.S. Treasury’

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)

Housing Recovery Passing over First-time Prospects

April 9th, 2013 Comments off

Laurie Maggiano, policy director for the U. S. Treasury’s Homeownership Preservation Office, says many people continue to be left out of the housing recovery, and if fact are still struggling, and how the Obama administration hopes to change that. A partnership between the Treasury and NeighborWorks America will reach out through the Making Homes Affordable Program to assist homeowners in submitting documents to their servicers at no charge. The Dept. of Labor is encouraging their centers around the country to inform unemployed homeowners of foreclosure prevention options. In addition, the Dept. of Housing and Urban Development (HUD) will establish the Housing Counseling Office set in motion by Dodd-Frank to provide information on avoiding foreclosure, as well as basic homeownership programs. As HousingWire informs MHProNews, Maggiano says from 2007 to 2012, for those with a FICO score over 780, new home purchases dropped 30 percent. During that same time, new home sales fell 90 percent for those with scores between 620 and 680, often first-time home buyers and those who have recently been hit with unemployment.

(Image credit: Joshua Scott/CNNMoney)

China Backing Major U.S. Housing Project

December 13th, 2012 Comments off

The World Property Channel reports China is backing the development of 20,500 homes in San Francisco to the tune of $1.7 billion, a development project at two former naval bases that will hire 5,000 over a six year period. Borrowing the money is Miami-based Lennar Corp.; terms were not disclosed. Hunters Point Naval Shipyard will receive $1 billion to build 12,500 homes, and 8,000 homes will be built at Candlestick Point at Treasure island for $700 million. The total build out is expected to take 20 years. Although a Lennar spokesman would not confirm the transaction, a property editor at the San Francisco Times says the general contractor will be China Railway Construction Co., which is the world’s second largest contractor, and that the China Development Bank has tentatively approved the loan. All parties hope to seal the deal before year’s end because the Foreign Account Tax Compliance Act goes into effect Jan 1. It requires disclosure compliance agreements with the U.S. Treasury for foreign financial institutions. MHProNews has learned from the Military Analysis Network that Hunters Point, which closed as a naval base in 1994, is a toxic waste dump and the target of a lawsuit alleging 19,000 violations of the Clean Water Act.

(Photo credit: Wikipedia–Hunters Point Naval Shipyard)



Sobama, What Now?

November 8th, 2012 2 comments

While President Obama’s re-election will likely thwart hopes of altering Dodd-Frank or the CFPB (Consumer Financial Protection Bureau), a more immediate concern is the possibility that the U.S. Treasury Dept. may have to bailout the Federal Housing Administration’s Mutual Mortgage Insurance Fund, according to nationalmortgagenews. A Romney administration would likely have tightened FHA’s credit standards and increased down payments for borrowers with low credit scores. Fannie Mae and Freddie Mac will probably not change much in the next four years; but the expected chairman of the House Financial Services Committee, Jeb Snarling, (R-TX), wants to move Fannie and Freddie out of conservatorship and privatize them in five years. Mortgage bankers are hoping the administration will replace Edward DeMarco, the acting director of the Federal Housing Finance Agency (FHFA), with a permanent director who will write down the principal on underwater mortgages, thereby helping thousands of borrowers restructure their notes. MHProNews has learned, meanwhile, newly-elected Sen. Elizabeth Warren, the engineer of the CFPB and critic of mortgage brokers, will likely seek a seat on the Senate Finance Committee where she will block any legislation that might reduce the whammy of the CFPB.

(Photo credit: Wikipedia–U.S. Capitol Floor)

FHA Moves REOs

November 15th, 2011 Comments off

NationalMortgageNews reports the Federal Housing Administration (FHA) unloaded 102,195 repossessed housing units in FY 2011, bringing in over $7 billion to the coffers of the Treasury. Tom Rose, director of real estate owned by FHA, says the government, which pays a six percent commission and sells only through Realtors, paid $460 million in commissions last year. “We’ve never cracked the six-digit level before, so it was a monumental year for us,” says Rose. He expects he will sell 100,000 again this year. On average nationally, the entire process of reselling REO takes 5.5 months, but Rose says he is moving them out within 120 days.

CFPB Picks Humphrey to Protect Seniors

October 19th, 2011 Comments off

HousingWire reports the son of former Senator and U.S. Vice-President Hubert Humphrey will join the Consumer Financial Protection Bureau (CFPB) to head the Office of Older Americans. Hubert “Skip” Humphrey III served 16 years as Minnesota’s attorney general and most recently was head of the Minnesota AARP (American Association of Retired Persons), and sits on the association’s national board. Part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), the division is designed to protect seniors from fraudulent and deceptive lending practices by educating them about financial choices and coordinating with law enforcement agencies to uncover scams that target older Americans. Says Raj Date, special adviser to the Treasury: “As baby boomers join the ranks of the retired, their hard-earned savings should help them realize opportunities, not serve as the target of deception and fraud. Skip’s experience as a state attorney general and state senator, and his work with seniors in his home state of Minnesota as well as on the national front, make him a perfect fit to lead the Office of Older Americans.”

(Photo credit: AARP)