The Federal Housing Administration needs to rethink the way it layers risk on its loans, in particular for borrowers who have poor credit history and large payment burdens, says a George Washington University study released today. The report, the third in a series of “FHA Assessment Reports” pinpoints mortgage default criteria for FHA and determines [...]

Is the Federal Housing Administration on the verge of going broke? A Wall Street Journal article this week raised concerns about the financial situation for FHA, indicating that the future is less-than bright for the giant housing agency. In fact, WSJ notes the risk is rising that FHA could require a tax bailout for the [...]

The Department of Housing and Urban Development recently published projections for 2012 Home Equity Conversion Mortgage volume following the close of its fiscal year on September 30. According to the projections, HECMs will see an increase to near 88,000 in 2012 from a total of 73,129 in FY 2011. Of the 2011 total, HECM Savers represented 3,828, [...]

The Department of Housing and Urban Development’s Mortgage Review Board has suspended Houston-based Allied Home Mortgage Corporation and its company CEO for violating Federal Housing Administration requirements and concealing those violations. Ginnie Mae has also suspended the company from issuing mortgage-backed securities. “We will not tolerate mortgage lenders who play fast and loose with FHA’s [...]

Borrowers in HECM default share some common characteristics, the Department of Housing and Urban Development reported to attendees of the National Reverse Mortgage Lenders Association conference in Boston last week. Reporting on data compiled in recent months following Mortgagee Letter 2011-01, HUD’s Colin Cushman, director of portfolio analysis, shared some of the department’s findings. The HUD [...]

The Home Equity Conversion Mortgage Program is critically important and requires ongoing attention, the acting Federal Housing Administration commissioner told reverse mortgage lenders during a presentation on Tuesday. Stressing the need to prevent tax and insurance default and regain housing counseling funding, Acting Commissioner Carol Galante presented a very supportive outlook for the HECM program. [...]