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Posts Tagged ‘underserved communities’

National Association of Home Builders to Congress: Retain 30-Year Mortgage

November 11th, 2013 Comments off

While supporting housing finance system reform, the National Association of Home Builders (NAHB) reiterates that reform must include 30-year, fixed-rate mortgages as well as mortgage financing for multifamily housing. “There are serious doubts on whether a private housing finance system would be capable of supporting this type of product without some government backing,” said Judson. “At a minimum, the cost and terms of 30-year mortgages would be significantly less favorable under a totally private system and many fewer families would be eligible for home loans.” Testifying before the Senate Banking Committee, Judson noted the importance of programs that target certain sectors of the home buying public, like the Federal Housing Administration (FHA), the Veteran’s Administration, and the Dept. of Agriculture’s Rural Housing Service. As MHProNews has learned, he said, “The Federal Housing Administration’s single-family mortgage programs are a unique and vital component of the housing finance system, providing access to homeownership for underserved communities, primarily first-time home buyers, minorities and those with limited down payment capabilities.” He also noted the difficulty home builders are having in accessing production credit from traditional funding sources.

(Image credit: firstbanktrust)

FHA’s Carol Galante is Galloping

October 12th, 2011 Comments off

OriginationNews reports that two years after leaving affordable housing developer Bridge Housing Corporation to run the Federal Housing Administration’s (FHA) multi-family program, Carol Galante is operating the entire agency. After David Stevens left the FHA to head the Mortgage Banker’s Association (MBA), Galante has become the acting commissioner. She now oversees FHA’s single-family program, is working on a program to sell government-backed foreclosed properties in bulk to investors to rent out, and a program to allow underwater borrowers to refinance at lower mortgage rates. “There are a lot of folks underwater who are still making their payments,” she adds. Galante is overhauling the reverse mortgage program to adapt to seniors’ needs of paying increasing property taxes and homeowners insurance. One of her goals is to make credit more accessible for new homeowners. “On the single-family side, FHA needs to be an important source of financing for underserved communities, and low-and moderate-income borrowers,” she says.

(Graphic credit: FHA)