The Federal Housing Administration is urging lenders to provide temporary postponement of mortgage payments — or “informal forbearance plans” — for furloughed government employees and contractors who have been affected by the shutdown.
With a government shutdown that has a ripple effect on income verifications and federal home-loan insurance, mortgage professionals are bracing for delays in an already tight market. If the IRS is closed or understaffed, loans could be stalled.
The government agency, which guarantees loans with as low as 3.5 percent down, said it needs $1.7 billion to cover potential losses on the volume of low-down-payment mortgages it insured from 2007 to 2009.
The two government agencies offer a little-known option known as assumability. The feature allows the buyer of a home financed with an existing F.H.A. or V.A. loan to assume the seller’s loan under the same terms, rather than take out a new mortgage.
Normally, homeowners who were foreclosed on must wait three years before they can qualify for a loan backed by the Federal Housing Administration. But new rules could allow these borrowers to qualify for a new mortgage in as little as a year.
A first-ever study by U.S. housing officials has found discrimination against same-sex couples when shopping for rental apartments advertised online, as compared to how otherwise similar heterosexual couples are treated.
The Federal Housing Administration has lost about $5 billion from its reverse mortgage program and needs to make changes to preserve the increasingly risky option for senior homeowners.
Mortgage applications for both purchases and refinances saw a robust gain of 5 percent last week, as more consumers are staying away from government-backed loans, according the Mortgage Bankers Association.
The government mortgage insurer, the Federal Housing Administration, will generate $18 billion in fiscal year 2013 from a large volume of quality loans, including $3 billion from a new premium increase that went into effect April 1.
Mortgage activity increased 4.5 percent last week from one week earlier on the strengthen of refinances — and despite a 14 percent drop in government-backed purchase applications, according to the Mortgage Bankers Association.