Mortgage applications fell 7.1 percent last week compared to the previous week after a pullback by those refinancing mortgages backed by the government, according to the Mortgage Bankers Association.
Price cuts to the Federal Housing Administration’s mortgage insurance premiums took effect June 11, creating a surge in refinancing among the millions of borrowers whose mortgages are currently insured by FHA.
U.S. housing officials are expanding help to borrowers severely delinquent on loans insured by the Federal Housing Administration as part of a note sale program to private investors.
Deutsche Bank and its lending subsidiary will pay $202 million as part of a settlement with federal authorities over reckless lending and false claims tied to federally insured loans.
U.S. housing officials have indefinitely disbarred three South Florida mortgage loan officers and a Pittsburgh title agent after criminal convictions for defrauding elderly borrowers, mortgage lenders and the Federal Housing Administration (FHA).
The Federal Housing Administration will lower its upfront premiums for mortgage insurance and reduce annual fees for certain borrowers who qualify for streamlined refinancing into today’s historically low interest rates.
The Federal Housing Administration will increase its annual mortgage insurance premium by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount.
Lenders are already adding an increase in fees on mortgages backed by Fannie Mae, Freddie Mac and the Federal Housing Administration to new loans – a hike that will pay for the extension of the payroll tax cut. The fee increase of 0.1 of a percentage point is to be added to all loans that Fannie and Freddie buy from April 1 to Oct. 1, 2021.
The Federal Housing Administration is extending for another year its temporary waiver of anti-flipping regulations, initially introduced in 2010 to facilitate the turnaround of foreclosed properties in hard hit communities. In most cases, FHA ordinarily prohibits insuring a mortgage on a home owned by the seller for less than 90 days.
The Federal Housing Administration will offer homeowners who owe more than their home is worth a new “short refinance” opportunity beginning Sept. 7, but there are several requirements that “underwater” borrowers must meet and lender participation is voluntary.