President Bush has announced that the Federal Housing Administration will roll out a new program in a few days that will provide certain subprime borrowers facing default with a refinancing option.The "FHASecure" program will help many families who are struggling to refinance into FHA-insured mortgages and keep their homes, the president said. The program is designed to refinance creditworthy borrowers who have been current on their monthly payments up to the time of the reset of their subprime adjustable-rate mortgage. It is understood that borrowers would be able to roll up to six missed payments into their new FHA loan, but they can’t go above a 97.75% loan-to-value ratio (based on a new appraisal). For the program to have a real impact, investors or lenders will have to write down the amount of the existing mortgage so the borrower meets the FHA LTV requirement. Or else someone will have to put up a "cash transfusion to cover the shortfall," said consultant Brian Chappelle of Potomac Partners in Washington. President Bush stressed that the new FHA program is not a "bailout" for lenders, and he called on lenders to work with homeowners to modify or restructure their mortgages. "I believe lenders have a responsibility to help these good people," the president said.
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McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
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The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
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The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
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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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