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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.



additional comments on
"Lenders Continue to Pull Away from FHA"

  1. Dot Beckley says:

    I am not a fan of Bank of America but what is wrong with them pulling away from FHA and replacing it with another product? It will probably have less red tape:) How does the consumer lose on this? And as for people taking equity loans before the 2009. Yes, there were many people who shouldn't have taken out home equity loans. They should have known that the economy was about to nosedive and they would lose their jobs, or that they would get divorced, or suffer a severe inury or illness, their bad…. but I personally remember daily ads from every possible source in front of my eyes about all the wonderful things I could do with a home equity loan. I didn't bite but I am older and wiser. If the people who "know money" think it's a good idea and the borrower is approved, who is more culpable here? Who offered niv loans? 80/20, 100% and 120% products? We consumers used to think of our banks as an entity that watched out for our money and didn't let us get in over our heads. I think conumers get it now. The banks offer "products" to sell and it is buyer beware.

  2. Craig Morley says:

    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…?

  3. Gail Ketchie says:

    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?

  4. Elaine Byrne says:

    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!

  5. Pat A says:

    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.

  6. FNMA has had a 3% down conventional loan for some time now. However, we still need FHA for the borrower with lower FICO scores. PMI for a borrower with a 640 FICO, which is acceptable for a good rate with FHA, is almost another mortgage payment in itself, if you can even get PMI. Then you can talk about the conventional interest rate with lower scores, which is not pretty at all. At lot of borrowers have low scores not because they don't pay their bills on time, but because they are young and have new credit, still waiting for their scores to grow.

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