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  • June 12, 2010 at 9:25 PM #17559
    HLS
    Participant

    June 11, 2010
    The House of Representatives overwhelmingly passed an FHA reform bill to triple annual premium payments to 150 basis points, a move designed to bolster the insurer’s finances.

    (On a $400K loan the monthly charge would go from $183 to $500)

    For any mortgage involving an original principal obligation that is less than 90% of the appraised value of the property, this premium may be required to be paid for the first 11 years of the mortgage.
    If the downpayment is less than 10%, the premium will be assessed over 30 years.

    The final tally on the vote for the FHA Reform Act (H.R. 5072) was 406-4.

    In a statement, HUD secretary Shaun Donovan said the bill would enable the Federal Housing Administration to “reform its current mortgage insurance premium structure by shifting some of the upfront cost to the annual premium—a move that will increase FHA’s capital reserves and reduce risks” to the government insurance fund. With the House bill passed, the Senate must come up with its version of the measure.
    **
    8.5% of FHA single-family loans were 90 days or more past due in April
    **

    June 13, 2010 at 12:40 AM #563722
    jpinpb
    Participant

    That’s one way to force people to put more money down.

    June 13, 2010 at 12:40 AM #563820
    jpinpb
    Participant

    That’s one way to force people to put more money down.

    June 13, 2010 at 12:40 AM #564322
    jpinpb
    Participant

    That’s one way to force people to put more money down.

    June 13, 2010 at 12:40 AM #564427
    jpinpb
    Participant

    That’s one way to force people to put more money down.

    June 13, 2010 at 12:40 AM #564706
    jpinpb
    Participant

    That’s one way to force people to put more money down.

    June 14, 2010 at 10:52 AM #564594
    Huckleberry
    Participant

    [quote=HLS]June 11, 2010
    (On a $400K loan the monthly charge would go from $183 to $500)
    **[/quote]
    HLS, you meant annual charge, not monthly, correct?

    June 14, 2010 at 10:52 AM #564688
    Huckleberry
    Participant

    [quote=HLS]June 11, 2010
    (On a $400K loan the monthly charge would go from $183 to $500)
    **[/quote]
    HLS, you meant annual charge, not monthly, correct?

    June 14, 2010 at 10:52 AM #565191
    Huckleberry
    Participant

    [quote=HLS]June 11, 2010
    (On a $400K loan the monthly charge would go from $183 to $500)
    **[/quote]
    HLS, you meant annual charge, not monthly, correct?

    June 14, 2010 at 10:52 AM #565295
    Huckleberry
    Participant

    [quote=HLS]June 11, 2010
    (On a $400K loan the monthly charge would go from $183 to $500)
    **[/quote]
    HLS, you meant annual charge, not monthly, correct?

    June 14, 2010 at 10:52 AM #565580
    Huckleberry
    Participant

    [quote=HLS]June 11, 2010
    (On a $400K loan the monthly charge would go from $183 to $500)
    **[/quote]
    HLS, you meant annual charge, not monthly, correct?

    June 14, 2010 at 11:19 AM #564648
    HLS
    Participant

    [quote=Huckleberry][quote=HLS]June 11, 2010
    (On a $400K loan the monthly charge would go from $183 to $500)
    **[/quote]
    HLS, you meant annual charge, not monthly, correct?[/quote]

    Annual premium would go from $2200 to $6000.
    I cannot imagine that this will pass as proposed. It will not help the artificial market the govt is desperately trying to protect.

    FHA is like assigned risk auto insurance, it allows people with very little money and a low credit score to get a mortgage. It may get more expensive. They may be facing huge losses that have not been disclosed yet.

    With a decent credit score, Fannie/Freddie are far better loans, but you need a higher credit score to qualify for 5% down. The mortgage insurance premium needs to be factored in as well.

    The real fear is that FHA has allowed people to buy homes in the last few years who will default if the market continues to fall and people remain unemployed.

    There was no need for FHA loans prior to 2007 when 100% financing, stated income and 2nds were available. They were a tiny part of the financing market. Less than 5% (?) Recently I think that FHA is around 35%.

    June 14, 2010 at 11:19 AM #564742
    HLS
    Participant

    [quote=Huckleberry][quote=HLS]June 11, 2010
    (On a $400K loan the monthly charge would go from $183 to $500)
    **[/quote]
    HLS, you meant annual charge, not monthly, correct?[/quote]

    Annual premium would go from $2200 to $6000.
    I cannot imagine that this will pass as proposed. It will not help the artificial market the govt is desperately trying to protect.

    FHA is like assigned risk auto insurance, it allows people with very little money and a low credit score to get a mortgage. It may get more expensive. They may be facing huge losses that have not been disclosed yet.

    With a decent credit score, Fannie/Freddie are far better loans, but you need a higher credit score to qualify for 5% down. The mortgage insurance premium needs to be factored in as well.

    The real fear is that FHA has allowed people to buy homes in the last few years who will default if the market continues to fall and people remain unemployed.

    There was no need for FHA loans prior to 2007 when 100% financing, stated income and 2nds were available. They were a tiny part of the financing market. Less than 5% (?) Recently I think that FHA is around 35%.

    June 14, 2010 at 11:19 AM #565245
    HLS
    Participant

    [quote=Huckleberry][quote=HLS]June 11, 2010
    (On a $400K loan the monthly charge would go from $183 to $500)
    **[/quote]
    HLS, you meant annual charge, not monthly, correct?[/quote]

    Annual premium would go from $2200 to $6000.
    I cannot imagine that this will pass as proposed. It will not help the artificial market the govt is desperately trying to protect.

    FHA is like assigned risk auto insurance, it allows people with very little money and a low credit score to get a mortgage. It may get more expensive. They may be facing huge losses that have not been disclosed yet.

    With a decent credit score, Fannie/Freddie are far better loans, but you need a higher credit score to qualify for 5% down. The mortgage insurance premium needs to be factored in as well.

    The real fear is that FHA has allowed people to buy homes in the last few years who will default if the market continues to fall and people remain unemployed.

    There was no need for FHA loans prior to 2007 when 100% financing, stated income and 2nds were available. They were a tiny part of the financing market. Less than 5% (?) Recently I think that FHA is around 35%.

    June 14, 2010 at 11:19 AM #565349
    HLS
    Participant

    [quote=Huckleberry][quote=HLS]June 11, 2010
    (On a $400K loan the monthly charge would go from $183 to $500)
    **[/quote]
    HLS, you meant annual charge, not monthly, correct?[/quote]

    Annual premium would go from $2200 to $6000.
    I cannot imagine that this will pass as proposed. It will not help the artificial market the govt is desperately trying to protect.

    FHA is like assigned risk auto insurance, it allows people with very little money and a low credit score to get a mortgage. It may get more expensive. They may be facing huge losses that have not been disclosed yet.

    With a decent credit score, Fannie/Freddie are far better loans, but you need a higher credit score to qualify for 5% down. The mortgage insurance premium needs to be factored in as well.

    The real fear is that FHA has allowed people to buy homes in the last few years who will default if the market continues to fall and people remain unemployed.

    There was no need for FHA loans prior to 2007 when 100% financing, stated income and 2nds were available. They were a tiny part of the financing market. Less than 5% (?) Recently I think that FHA is around 35%.

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