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Hensarling to HUD chief: You are in violation of the law

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Mortgage Professional America | 11 Feb 2015, 02:01 PM Agree 0
At a hearing Wednesday morning with the U.S. House of Representatives Financial Services Committee, HUD Secretary Julian Castro defended the FHA’s decision to reduce mortgage insurance fees.
  • Mortgage Man | | 11 Feb 2015, 02:24 PM Agree 0
    How is the fund to recover if they only get adversly selected for mortgages that Fannie Mae will not take. Represenative Hensarling is out of touch on this issue. FHA has greatly reduced its exposure and should still remain profitable. Had it not been for the reverse mortgages being insured by HUD the fund would be beyond the 2% level. Maxine Waters has it correct about FHA being consistant when the private market got greedy and that is why FHA was still there in the end after a massive decline in home values.
  • John Easterbrook, MLO | | 11 Feb 2015, 02:28 PM Agree 0
    Maxine Waters is right on about FHA keeping our real estate market liquid during the financial crisis. They are a necessary and valuable asset to our economy.
  • Mark | | 11 Feb 2015, 02:30 PM Agree 0
    If the Washington bureaucrats would leave the fund alone and not use it for other types of spending it wouldn't be on the edge of having a short fall. I have noticed first hand how much money people are saving this go around with the reduced monthly MI. Over the years, on many potential refi's, I have told people they wouldn't have any positive decrease in there payment if they did a streamline with a lower rate because of the systematic increases to the monthly MI factor. The P&I would be lower but the over all payment with MI included would be the same or in some cases higher. There are millions of qualified fha borrowers that couldn't take advantage of lower rates because of this. I never thought I would be on the side of Maxine Watters but she is right for once on this one. I had a conversation today with my borrower and when she knew what the savings were, she said they were going to pay off their Christmas debt they extended on credit cards. Stop the wars, entitlements, over spending and help out the fha borrower that have a good track record to streamline.
  • Perfparjer | | 11 Feb 2015, 06:38 PM Agree 0
    MI is just an impediment to comfortable home ownership. Higher MI premiums only hurt borrowers. I would love to see underwriting standards become more critical of ability to repay, rather than insuring any possibility of a mistake as we have already seen does not work. Reports I read are that FHA is extremely healthy financially. Rep Hensarling would make me happier if he would pursue government payment of MI from those gobs of money taken from financial institutions by the CFPB. We are talking Billions with a capital B.
  • concernedbroker | | 12 Feb 2015, 11:35 AM Agree 0
    Maxine Waters seems to be the only one on board with trying to get this economy moving in the positive direction. With the complete overhaul of all the guidelines now necessary to get a mortgage approved it should not be an issue for default. If everyone remembers the majority of the defaults occurred when the value of one's home suddenly became worthless compared to the mortgage they owed. Since it would appear everyone on the face of this earth knows now not to buy these mortgages thru portfolio investors FHA should move forward even more to reduce the MIP.
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