The Department of Housing and Urban Development has published two interim final rules to jump-start its new downpayment assistance program and reduce the cost of refinancing federally insured reverse mortgages.Last year, Congress approved the American Dream Downpayment program, which provides up to $6,000 in downpayment assistance to low-income families buying their first home. The funds, which will be distributed by state governments, can also be used to pay for closing costs and renovations. The interim rule to implement the new $200 million-a-year program goes into effect April 29. The comment period ends June 1. HUD has also published an interim rule that reduces the cost of refinancing reverse mortgages insured by the Federal Housing Administration, which are called home equity conversion mortgages. Currently, HECM borrowers trying to tap more equity in their homes have to pay a 2% upfront insurance premium on the entire amount of a new HECM loan. Under the interim rule, seniors only have to pay the premium on the difference between the original loan balance and the new balance. "This will result in cost savings to seniors," said Jim Brodsky, counsel for the National Reverse Mortgage Lenders Association. Mr. Brodsky is with the Washington law firm of Weiner, Brodsky, Sidman & Kidder. The interim rule has an April 26 effective date, but it is unclear whether it applies to closings or applications. NRMLA is trying to get a clarification from HUD.
-
Prevention through new building standards and mapping technology aim to keep home insurance rates down but mortgage bankers see challenges.
5h ago -
The mortgage lender and servicer announced that Ranjit Bhattacharjee, a capital markets veteran, and Kevin Barker, a financial analyst with two decades of experience, have joined its ranks.
6h ago -
Because of rising home values, more transactions have proceeds over the federal tax exemption, especially in California, a CoreLogic study found.
10h ago -
Texas Capital Bank wants to bring the Administrative Procedures Act into the case, but Ginnie Mae said the legal proceedings are outside its scope.
11h ago -
Better's home equity loan product can be originated in a week or less, the company says.
11h ago -
The top five producers had an average dollar loan volume of more than $140 million in 2023.
April 23