FHA reverse mortgage changes

OFFICIAL: FHA Announces Fixed

June 17th, 2013 | by Elizabeth Ecker Published in , |

With some of the fallout to be expected following the change, the most recent data available from the Department of Housing and Urban Development indicates applications for April and May are well below their pre-April 1 levels.

“Based on numbers we’ve run through end of May it looks like applications are down much more significantly post April 1 than our conversations with lenders originally led us to believe, ” says John Lunde, president of Reverse Market Insight.

Anecdotally, some lenders are reporting double-digit losses spanning as high as 40%, with RMI seeing applications down at least a quarter by its informal tally.

“When we compare application volumes from January-February to April-May we’ve seen roughly 30% declines, ” Lunde says.

The loan mix has shifted from a vast majority of fixed rate loans to nearly 95% adjustable rate loans following the implementation of the moratorium. While lenders expected a surge of application volume in the months leading up to April, many said they were shifting marketing attention as well as training toward the new origination mix.

But losses around 30% may lead to more serious changes among lenders, should the application decline prove more steadfast than a short-tem reduction.

“Taken in conjunction with expected lower revenue per loan post April 1, I would imagine there are a lot of serious conversations happening at this point about where to tighten business models for more efficiency, ” Lunde says.

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Higher rates = Higher Home prices?

2011-08-23 15:15:52 by irvinerealtor

The Federal Housing Administration (FHA) will reduce single-family loan limits in the highest-cost metropolitan areas from $729,750 to $625,500 starting Oct. 1. The reduction, announced Friday afternoon, will affect 669 of the 3,234 jurisdictions in which the FHA insures loans.
The current floor loan limit in areas where housing costs are relatively low will remain unchanged, at $271,050 for one-unit properties. The mortgage loan limit and maximum claim amount for FHA-insured reverse mortgages will also remain unchanged, at $625,500.
The current maximum loan limits were to be retired in January 2009, but legislation delayed implementation of the loan-limit...

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FHA's 2014 Loan Limits to Change in Nearly 650 US Counties  — National Mortgage Professional Magazine
The changes announced today are effective for case number assignments between Jan. 1, 2014, and Dec. 31, 2014. “As the housing market continues its recovery, it is important for FHA to ..

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