Department of Agriculture loans Home

Arlington CountyArlington CountyEstablished in 1949, the U.S. Department of Agriculture’s Rural Housing Guaranteed Loan program is meant to provide home loans to folks of modest means in rural areas. But, according to a recent Reuters investigation, the USDA isn’t hewing to either the rural or the modest part of its mandate.

Via Reuters:

Seattle-based mortgage broker Dan Keller says that since 2009, he has arranged 50 to 60 loans a year for people buying houses in the suburbs, near the corporate campuses of Boeing, Microsoft and

Top homebuilders like DR Horton, Lennar and Pulte have pushed USDA-guaranteed loans hard, plastering advertisements for them on their websites and coaching first-time buyers who can't get conventional bank financing on how to qualify for the program.

Midsize Florida builder Southern Homes says that nearly 90 percent of its business is in USDA-backed loans, most of them for houses near freeways, shopping malls and multiplexes.

The rural housing program backed over 50, 000 zero-down loans to borrowers in urban areas from 2003 and 2011. Another 300, 000 such loans went to borrowers on city peripheries over that same period.

Reuters also found

more than 180 loans to borrowers making more than $500, 000, including dozens of millionaires, in apparent violation of the program's income guidelines. It found loans in Cape Cod's Hyannisport, home to the Kennedy family compound, and tony Healdsburg, in California's Sonoma County wine country. There were loans for second homes, and loans to people who could have obtained conventional financing—each a breach of the program's rules.

…[R]ecent audit reports from the USDA's inspector-general fault the program for laxity at the other end of the income scale, citing numerous instances of loans to borrowers with subpar credit scores or incomes that were too low. A February audit report said that in 2012, the program paid $496 million in loss claims, up from $295 million the previous year—mirroring what's happening on a much larger scale at the Federal Housing Administration, where defaults on billions of dollars in loans threaten the agency with insolvency.

The inspector-general found that more than 37 percent of the loans it examined were ineligible for one or more reasons, including borrowers whose incomes exceeded program limits, who didn't meet repayment guidelines or who already owned homes and could have gotten credit without the government guarantee. At one lender alone, 46 mortgages had been made to ineligible borrowers. Of those, 33 were in default, resulting in more than $1.75 million in claims.

University of Michigan Library Farmers Home Administration loan programs: Hearing before a subcommittee of the Committee on Appropriations, United States Senate, Ninety-sixth ... : special hearing, Department of Agriculture
Book (University of Michigan Library)

Good thing we have a smart VP

2009-04-02 05:35:39 by junkvander

Biden credits stimulus for fire station funded under Bush
PIKEVILLE, N.C. — Vice President Joe Biden brought a clear message to this tiny Eastern North Carolina town Wednesday: The federal recovery money isn't just for big banks and auto companies.
Biden and U.S. Secretary of Agriculture Tom Vilsack announced a new wave of $10.4 billion in federal stimulus money for home loans across the country, and billions more for essential services in rural communities such as Pikeville, which is getting money for a new fire station. Biden used the outdated, current station as a backdrop


2012-04-17 19:56:11 by -

35. Do not allow your child to eat school lunches or breakfasts.
36. Do not ask for FEMA assistance when everything you own gets wiped out by disaster.
37. Do not ask the military to defend your life and home in the event of a foreign invasion.
38. Do not use your cell phone or home telephone.
39. Do not buy firearms that wouldn’t have been developed without the support of the US Government and military. That includes most of them.
40. Do not eat USDA inspected produce and meat.
41. Do not apply for government grants to start your own business.
42. Do not apply to win a government contract

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Ocwen Financial To Pay $2.1B To Settle Accusations Of 'Systemic Misconduct'  — Mortgageorb
.. struggling homeowners trying to save their homes" by "failing to provide accurate information about loan modifications and other loss mitigation services; failing to properly process borrowers' applications and calculate their eligibility for loan ..

How Recent Grads Can Manage the Holidays  — Wall Street Journal
While one "would prefer to have no debt," Ms. von Tobel says, good debt is related to investments that hopefully will grow in value over time—like a home or a college education. Enlarge ..

BiblioGov Characteristics of New Borrowers Obtaining Farm Ownership Loans from the Farmers Home Administration--Fiscal 1966
Book (BiblioGov)
BiblioGov New Borrowers in the Farmers Home Administration Operating Loan Program, 1965-66: Compared with New Borrowers Obtaining Loans from Banks and Production Credit Associations
Book (BiblioGov)
Limited progress made in developing loan accounting system, Farmers Home Administration, Department of Agriculture : report to the Congress
Book (U.S. General Accounting Office)

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