Top 3 mortgage news this week…
Hi all,
Here’s a brief outline of the top 3 mortgage news this week.
1. FHA has come up with new condo rules
The FHA has set 4 rules for condo mortgages. These rules will come into effect from 2nd November, 2009. As per the new rules, insuring a mortgage on a condo unit is not allowed unless all the units satisfy the criteria for getting approval on FHA mortgage. Also, 30% of the units in the condo project should be financed by FHA mortgages. Otherwise, FHA won’t insure a condo unit within the project. Know more…
2. California bans upfront fees on loan modification
The State of California has banned upfront fees charged by loan modification services. The purpose is to protect borrowers from being a victim of loan modification scams. As per law, any real estate licencee or attorney should refrain from charging an upfront fee from a borrower with the promise that the former will modify his home loan or offer services related to forbearance. However, the ban on the upfront fees is restricted to residential mortgages taken against 4 or less than 4 dwelling units. Get more details…
3. New program for homebuyers and renters
The Obama Administration has come up with a new program with which it’ll help local and state housing authorities provide support to homebuyers and renters. The purpose of the new program is to create homeownership opportunities through mortgage financing at low interest rates and provide assistance to those who’re looking to rent a home. It’ll also help housing agencies recover from the financial crisis due to credit crunch and housing market slowdown.
Under this program, the Government expects state housing finance agencies to provide home financing through a bond purchase program. There’s also a temporary credit and liquidity program to be introduced by the housing agencies. Find more details…