The Federal Housing Administration is planning a "major" advertising campaign in "selected markets" where the agency believes mortgage brokers may be guiding homebuyers to more expensive nonprime loans.The campaign is said to be an effort to secure a better deal for borrowers, but it also could help shore up the sagging government-insured mortgage program. Once the first choice of borrowers who don't measure up to conventional loan standards, the FHA is now often the last option suggested by lenders. In the second half of 2004, government mortgages (including those guaranteed by the Department of Veterans Affairs) accounted for just 5% of all originations, according to the latest figures from the Mortgage Bankers Association. The FHA hopes to win over borrowers by stressing that "our rates are much lower than subprime and only slightly higher than conventional," Vance Morris, director of single-family program development, said at the National Association of Realtors' annual Midyear Legislative Meetings in Washington. Mr. Morris said ads will also emphasize that consumers can be assured of getting "an honest appraisal" with a government-insured loan, and that if they get into trouble, "we will work with you to keep you in your home."
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
5h ago -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
9h ago -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24