Blog of the Mortgage

Well it was bound to happen sometime. I mean even in this envirnoment old maids have to change.
You can read an Article Here where the FHA Commissioner Brian Montgomery pretty well rips into DPA and the losses it 's caused HUD. More on that later.
HUD has officially done away with MIP equality and is now charging fees varying based upon the different credit scores and LTV's in our borrower's loan.
You can Print a copy of the new schedule and explanation of the fees here.
Print and Save:
Theresa Ballard of CAMB fame provided this to us so give her credit for the work.
Basically: Since HUD/FHA are under so much pressure to absorb the brunt of the housing crisis we're in they've agreed based only under certain terms and conditions to pull out the save.
Risk Based pricing was one of those conditions.
HUD knew as well as most of you that Sub-prime lending and Alt-A lending and the subsequent securitization pools that followed alleviated much of the FHA from financing this recent run up in housing.
You and I both know that borrower's came in 3 very basic classes (Prime, Alt, Sub) and frankly in the busiest states HUD was hardly involved.
Prime (FNMA/FHLMC) has already changed their pricing tiers which is why FHA has been so darn attractive an option not to mention the low down requirements and cheap interest rates with discounted (basically) MI.
Well, 2008, the year of excitement and change has brought us another one.
So, prepare yourself and prepare your borrowers for these changes. Prepare your Realtors and Prepare your Escrow partners as well.
This is IMPORTANT. No doubt about it.
When does this begin?
July 14th Based on the Case Number issuance date in FHA Connection.
Any case # pulled AFTER July 14th is subject to these new charges.
I mentioned the article from the Times above. Read it.
We may be changing the way we originate FHA again by the end of the year.
HUD really believes that borrower's with no "Skin in the Game" or those using DPA for the down payment are causing them the hurt they're feeling now. They want to eliminate DPA (Nehemiah, Ameridream et. al.) altogether.
Prepare yourselve's and your customers and Realtor Partners for these changes possibly coming on the horizon.