President Bush has signed into law legislation that raises the Department of Veterans Affairs loan limit by 40% and has been termed highly significant by a VA official.The bill., S. 2486, effectively allows lenders to make VA-guaranteed loans up to the Fannie Mae/Freddie Mac loan limit of $333,700 in principal amount, up from $240,000. The law also indexes the VA loan limit to the conforming loan limit, so that on Jan. 1 it will rise to $359,650. Keith Pedigo, director of the VA loan guarantee service, told MortgageWire that the law will boost the ability of veterans living in high-cost areas to take advantage of the VA guaranty benefit. VA originations totaled $44 billion in fiscal year 2004. Lenders and veterans supported the increase, saying that home price appreciation -- especially in high-cost areas -- left many veterans without access to the VA program. The bill also renews the VA's authority to guarantee one-year adjustable-rate mortgages, which had expired in 1995, and gives the VA secretary authority to change the maximum adjustment allowed on hybrid ARMs. Previously, hybrid ARMs could not adjust by more than one percentage point, a limit that made it difficult for lenders to offer hybrids with an initial term of five years or more, Mr. Pedigo said. Mr. Pedigo deemed the new law "probably the most significant piece of legislation for the VA program in the last 35 years."
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
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In a Senate hearing, Director Sandra Thompson said a raise to the required income threshold provided to affordable housing was on the table, while housing regulators also faced questions related to property insurance hikes and title insurance waivers.
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The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
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The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
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But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
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The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
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