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Government proposes bid to grow FHA business

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Mortgage Professional America | 02 Sep 2015, 08:53 AM Agree 0
The government is trying to encourage banks to originate riskier mortgages by proposing new documents that would leave room for minor errors on those files – but the banks aren’t yet sold.
  • SBHarkness | | 02 Sep 2015, 09:14 AM Agree 0
    Quicken Loans is reviewing the proposal? You mean this Quicken mortgages: DETROIT — The U.S. Justice Department sued Quicken Loans on Thursday alleging the Detroit mortgage lending giant had improperly originated and underwrote mortgages insured by the Federal Housing Administration.

    The complaint, filed in the U.S. District Court in Washington, D.C., alleges that from September 2007 through December 2011, Quicken knowingly submitted, or caused the submission of, claims for hundreds of improperly underwritten FHA-insured mortgages.
  • AbletoLoan | | 02 Sep 2015, 02:13 PM Agree 0
    Maybe if the MIP for "life" of the mortgage would go away, it would make for sense for borrowers to utilize FHA. MIP for life is a total rip-off!!!
  • KAS | | 02 Sep 2015, 04:27 PM Agree 0
    yes the MIP for life and 11 years is a rip off for the consumer- and FHA isn't going to give up the MULA.

    The upfront MIP 1.75% was increased to help cover claims and to keep FHA solvent supposedly with the market crash----but the rest of us and the consumers had no gifted upfront and back door income to help them stay solvent.

    So not why not bring these percentages down if you want more players.
    What FHA has doing is making the rate more appealing than conventional - because lower rates is the only way for them get consumer and charge then with the Annual MI / UPFRONT/MI.

    If FHA wants to make riskier mortgages (it is their program) then do not make every other FHA consumer pay the bill for their program.
    It is not to help more consumers buy ----it is rather to make more mortgages, and thus retain more Upfront MI and monthly MI.

    TOO many claims - then rethink the program.

    Need conventional rate to be on par with FHA - Then could Conventional lower the pricing add on for FICO and LTV---? Just thinking...
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