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Posts Tagged ‘Veteran’s Administration’

Before you Dismantle Fannie Mae, Freddie Mac and Ginnie Mae………

May 27th, 2015 Comments off

joseph_murin__yahoo_creditWhile he supports free enterprise in the mortgage market, former Ginnie Mae President Joseph Murin, in a blog on housingwire, says without the federal guarantee offered by the Federal Housing Administration, the Department of Agriculture and Veterans Administration mortgages, the U. S. economy may have fallen farther than it did. Ginnie Mae grew during the Great Recession as Freddie Mac, Fannie Mae (the government-sponsored enterprises, or GSEs) and private markets tightened their lending standards.

Less than a year ago nearly 80 percent of new mortgages were backed by a government guarantee. To suddenly remove the GSEs and Ginnie Mae would be disastrous; to remove it slowly over time does not guarantee that private markets would necessarily pick up the slack. Murin says, “Without the government guarantee, our housing industry would be left to the whims of a private market. We’ve already seen what private markets tend to do in times of economic crisis or hardship: they hunker down and mitigate risk.

If the backstops did not exist, and the relatively uniform underwriting and origination standards the GSEs bring to the table disappeared, investors would become much more skittish on the secondary market. As MHProNews understands, the number of lenders (especially for smaller loans) would decline and fewer consumers would be buying homes because the cost of mortgages would inflate.

Murin realizes the GSEs need some changes, and taxpayers need to be protected from mortgage industry collapse and bailouts. But, he says, Unless we, as a nation, have turned our back on the American Dream and the ideal that most (if not all) Americans should have access to affordable homes, we need to maintain, in large part, the role of the GSEs and Ginnie in that dream. ##

(Photo credit: yahoo–Joseph Murin)

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

Rural Home Purchase Loans Still over 50 Percent Below Pre-Recession

October 15th, 2014 Comments off

home_mortgage_disclosure_act_dataWhile refinance lending in rural and small town communities fell by 23 percent in 2013 compared to 2012, purchase lending in the same areas rose 2.3 percent for the similar period, after hitting a ten-year low in 2011, according to what daily.yonder tells MHProNews.

Just as rising interest rates and tighter lending criteria have affected the nation overall, the number of home loans fell 14.1 percent between 2012 and 2013 in rural areas, according to data obtained from the Home Mortgage Disclosure Act (HMDA).

Although showing some improvement, home purchase loans in rural and smaller communities remain 52 percent below pre-2006 levels.

Following the housing crisis, the government’s role in rural home lending increased through the Federal Housing Administration’s (FHA) mortgage insurance program, the Veterans Affairs (VA) lending programs and the Department of Agriculture’s loan guarantee programs.

Prior to the recession, 90 percent of first-lien home purchase loans were conventional loans, but that number fell to just above 50 percent by 2009. Although the level of conventional lending is 41 percent of what it was in 2004, during the last three years, conventional home purchase originations rose by 14 percent while government assisted loans dropped 17 percent.

Roughly 11 percent of rural home purchase loans were classified as “high-cost” versus seven percent of urban/suburban mortgages, due in part to the higher incidence of manufactured homes in rural areas financed with personal property loans, which often have higher interest rates. Interest rates of 1.5 percentage points higher than the annual percentage rate (APR) on prime mortgage loans are classified as “high-cost.” Due to so-called ‘unintended consequences’ of the Dodd-Frank Act, half of rural manufactured home purchase loans as reported through the HMDA were considered “high-cost.” ##

(Graphic credit: DailyYonder/Housing Assitance Council)

matthew-silver-daily-business-news-mhpronews-com

(Story submitted by Matthew Silver to Daily Business News – MHProNews)

Manufactured Home Purchases Available for Military Veterans

June 4th, 2014 Comments off

According to themortgagereports.com, Veterans Administration (VA) loans for buying a home through the Department of Veterans Affairs are often the least expensive route for homeownership for current and former U. S. military personnel. VA loans allow up to 100 percent financing with no required mortgage insurance and can be used to buy manufactured homes (MH). The program, which has helped millions of veterans and service personnel in the last 70 years, covers primary residences, not investment property or second homes. The VA does not make the loan, it only insures a portion of the loan, MHProNews has learned. The VA Guaranty gives lenders the backing to offer 100 percent LTV (loan-to-value) mortgages to qualified borrowers, but lenders have to meet certain guidelines set by the VA. Qualified borrowers can often obtain mortgage rates lower than those offered by Fannie Mae and Freddie Mac. ##

(Image credit: theblaze.com)

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)

Veterans Administration Offers Manufactured Home Loans

June 23rd, 2013 Comments off

The Veterans Administration (VA) Home Loan allows qualified veterans the opportunity to purchase a home, including a manufactured home, with or without a site, or to buy and improve a site, with no down payment. Although the veteran is required to live in the house, the borrower’s spouse also satisfies the occupancy requirement. The VA will protect a private lender of a manufactured home loan up to 40 percent of the amount (no more than $20,000) if the veteran or a later owner of the home fails to make good on the loan. As military.com tells MHProNews, a veteran may also buy income property, up to four units, providing the borrower occupies one of the units.

(Photo credit: Horizon Land Co.)

Modular Housing for Vets Up in the Air

April 29th, 2013 Comments off

MHProNews has learned from gainesville.com a planned 38 unit modular housing complex to accommodate 112 homeless veterans may be scuttled by the Veterans Administration because the Alachua Count Housing Authority (ACHA) has made “minimal progress toward completion,” according to a letter received by the authority from Jeffrey L. Quarles, director of the VA’s Grant/Per Diem Program. The letter said the project was supposed to be completed by May 1, 2013, but ACHA Director Herbert Hernandez says he became director in Feb. of this year and cannot find documents purporting to show the completion date. He has until May 10, 2013 to explain why the VA should continue with the plan, noting the paperwork has been finalized to break ground. While the exact date for completion has been a matter of uncertainty for the housing authority, Hernandez says he has heard second hand that completion must be by Aug. 1, 2013 because the VA cannot fund projects after that date due to fiscal year concerns. Chairman of the housing authority, Kali Blount, says the problem may stem from inaccuracies on a form submitted to the VA. ACHA has appealed to elected officials to help save the $20 million project, which is designed to provide transitional housing for veterans to help rebuild their lives, and includes funding for 20 years of programming.
(Image credit: gainesville.com/Alachua County Housing Authority

Returning from Default

March 11th, 2013 Comments off

CNNMoney tells MHProNews according to RealtyTrac 4.8 million borrowers have lost their homes to foreclosure since the housing bubble, and another 2.2 million let go of their homes in short sales. But many of them are coming back, and they are searching for a new place to live. Veterans Administration loans can be obtained after only two years out from foreclosure. Fannie Mae and Freddie Mac require borrowers to wait five years and have a credit score of at least 680 plus a ten percent down payment. The Federal Housing Administration’s (FHA) policy is to allow banks to lend FHA-backed loans to borrowers three years after a default.

(Image credit: mortgageorb)

White House Plans for Housing Mortgage Reform

February 13th, 2011 Comments off

On Feb.  11 the Obama Administration offered a plan to reform the mortgage finance industry. It would involve shrinking Fannie Mae and Freddie Mac at 10 percent per year, requiring a down payment of at least 10 percent for Fannie and Freddie loans, and making other changes to help increase private sector borrowing. According to MHI Week In Review, other flaws in the finance housing market to be addressed include increased consumer protection, more transparency and accountability on the part of mortgage securitizers and originators, and establishing national standards for mortgage servicing. In addition, the plan calls for greater support for affordable home ownership through FHA, USDA and the Veteran’s Administration, as well as affordable rental property. A Republican member of Congress says he is encouraged by this proposal that returns the housing market to private capital.