Lenders Continue to Pull Away from FHA

02/23/2016
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Seems more and more lenders are gun shy of potential FHA lawsuits and they seem to be pulling away by creating their own low-down programs.

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  • Was at a legislative conference in Utah were representative Mia Love reported that HUD is making a big push to DIVERSIFY to including getting involved with local zoning issues to promote better community diversity. Seems like HUD has lost its focus on it’s core purpose…?

    Craig Morley February 23, 2016 6:21 am Reply
  • Well, at “first blush”, I’m all for taking as much of the Fed out of FHA loans as possible. But there remains a lot of info to be gathered before I’m totally convinced. But suffice it to say that it would be wonderful if all the documentation, and re-submitting the same docs over and over to underwriters, the inordinate amount of time to close one, could be cut out or at least diminished. Elimination of the 2.75% funding fee would be a huge relief not to have to add back in to the mortgage. Not to say that BOA and others wouldn’t want to heap upon the buyer some or all of the same docs and fees. Just hoping, I guess, that they wouldn’t. Another piece of good news is the d/p would be 3% and not 3.5%. Hopefully they won’t make up for it by charging other fees. It’s going to be a wait-and-see thing, I’m sure. Not a real fan of Bank of America, so hope others will follow suit. Reminds me of the good old days where lenders were offering in-house loans that they didn’t sell. We can always hope, can’t we?

    Gail Ketchie February 23, 2016 8:17 am Reply
  • It’s not just BofA that’s making their own loans. I visited with Academy Mortgage and they are getting into portfolio loans in a big way!

    Elaine Byrne February 23, 2016 11:16 am Reply
  • Quicken should have their FHA license revoked after all of their shoddy underwriting, pressuring appraisers to raise values, and underwriter incompetence. If you read the DOJ complaint you will understand why they are under scrutiny.

    Pat A February 24, 2016 5:23 am Reply

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