(FMCC) The House is pursuing a bill backed by Representative Jeb Hensarling, the Texas Republican who leads the Financial Services Committee, that would liquidate Fannie FHA Credit Requirements Mae and Freddie Mac and limit government loan guarantees. This bipartisan bill will provide the FHA the tools it needs to get back on stable footing, Johnson said of the Senate measure approved today. The FHA is facing a shortfall of nearly $1 billion in its insurance fund in the current fiscal year after defaults on loans backed during the housing bubble depleted its reserves. The Senate bill would increase the cap on premiums the agency charges to borrowers and require annual evaluations of those rates.
Full original article: FHA Solvency Legislation Advanced by Senate Banking Committee
FHA Solvency Act Passes Out of Senate Banking Committee
Section three of the FHA Solvency Act of 2013 gives FHA the authority to seek indemnification from losses if the mortgage has a material defect that would have prevented the loan from being insured or have involved fraud or misrepresentation. Currently, FHA only has the authority to seek indemnification from lenders under thelender insurance program or the direct endorsement program. Except in cases of fraud or misrepresentation, the indemnification standard states that the loan in question must have been delinquent within 36 months and resulted in a default. The Secretary of the FHA is also required to issue regulations governing requirements for lenders, public reporting of loans subject to indemnification, and an appeals process. Last month in a written testimony submitted to the Senate Committee on Appropriations, FHA Commissioner Carol Galante proposed several legislative requests targeted at strengthening the FHA. Including indemnification authority for direct endorsement lenders, Galante also proposed authority to terminate origination and underwriting approval, as well as authority to change the Home Equity Conversion Mortgage (HECM) program via a mortgagee letter. The bipartisan FHA bill is scheduled to appear for a vote before the Senate Banking Committee on July 31.
Full original article: FHA Bill Outlines Indemnification Standards for Bad Loans
Latest Mortgage Rates: BB&T Fixed, VA and FHA Mortgage Rates for July 31
1376) is headed to the Senate after receiving approval from the Committee on Banking, Housing, and Urban Affairs . The bill, unveiled by Chairman Tim Johnson (D-South Dakota) and Ranking Member Mike Crapo (R-Idaho) earlier in the month, includes a number of bipartisan proposals from the committee intended to strengthen the FHAs financial situation, protect taxpayers, and ensure qualified borrowers still have access to credit. The bill passed by a vote of 21-1, according to a release from the committees website. This was a bipartisan effort from start to finish, Johnson said.
Full original article: FHA Solvency Act Passes Out of Senate Banking Committee
FHA Bill Outlines Indemnification Standards for Bad Loans
The actual mortgage interestrate will depend on a number of factors including but not limited toloan type, credit profile, property type, appraised value, occupancy and loan size. BB&T Refinance Rates 30-YearFixed Mortgage: 4.625%, 0.500 discount points, 4.737% APR 20-YearFixed Mortgage: 4.375%, 0.625 discount points, 4.542% APR 15-YearFixed Mortgage: 3.625%, 0.375 discount points, 3.797% APR 10-YearFixed Mortgage: 3.625%, no discount points, 3.794% APR The rate information provided assumes the purpose of the mortgage loan is to refinance an existing mortgage with a loan amount of $200,000 and an estimatedproperty valueof $250,000. The property is located in Washington, DC. The interest rate reflects a 60 day rate lock period. The actualmortgage interestrate will depend on a number of factors including but not limited toloan type, credit profile, property type, appraised value, occupancy and loan size.
Full original article: Latest Mortgage Rates: BB&T Fixed, VA and FHA Mortgage Rates for July 31