The Trump administration’s revived plan to privatize Fannie Mae and Freddie Mac is stoking fresh debate in Washington and on Wall Street, with experts warning that such a move could push mortgage rates higher and pose new challenges for homebuyers across the country. At the heart of the discussion lies a pivotal question: Can the U.S. housing market handle a shift away from government-backed mortgage guarantees?
The U.S. homebuilding sector found a modest silver lining in former President Donald Trump’s latest wave of tariff announcements. While much of the construction industry braces for higher costs, one crucial material—Canadian lumber—was notably spared from additional duties. That exemption, however, isn’t enough to ease broader concerns across the housing market, where rising costs and slowing demand are already testing builders' limits.
The U.S. homebuilding sector is feeling the heat as fresh tariff threats from former President Donald Trump’s policy platform stir up anxiety over rising construction costs, casting a shadow over what was shaping up to be a fragile housing market recovery. Shares of major homebuilders—like D.R. Horton, Lennar, PulteGroup, Toll Brothers, KB Home, Taylor Morrison, and Meritage Homes—have slid noticeably in recent days as investors weigh the potential financial fallout from escalating trade measures.
The Federal Housing Administration (FHA) has rescinded a number of appraisal policies instituted during the Biden Administration. In a Mortgagee Letter released last week, FHA rescinded three previous Mortgagee Letters released during the previous administration, effectively restoring the policies in place prior to these three letters.
Mortgage professionals can now access FICO’s Score Mortgage Simulator on the Xactus360 Verification Platform, the companies announced earlier this month. FICO announced the tool in October. It’s designed to simulate potential impacts to a consumer’s FICO score with hypothetical changes in credit report data. Examples include a potential borrower reducing their credit card balance or getting rid of a collection account.
The Single Family Handbook 4000.1 changed the name of the Streamline 203(k) program to the “limited program. Properties being reviewed for the 203(k) program that have commercial influences as contained in a Mixed-Use property, One unit must be owner occupied primary unit and the non residential portion of the property cannot exceed 49% of the square footage. The health and safety of the residential units and residents must be of primary concern. If there is a question of the health and safety contact HUD as you would be surprised of the properties HUD has rejected for health and safety concerns.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The FHA permits only one FHA mortgage at a time for a borrower except for four (4) exceptions.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The new Single Family Handbook (SFH) 4000.1 has attempted to simplify the program for everyone.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The past year has seen sweeping changes in almost every area of loan origination, underwriting guidelines, and loan disclosures. USDA and FHA have both created new handbooks that came with completely new guidelines. The CFPB introduced the Loan Estimate and Closing Disclosures which replaced the Good Faith Estimate, TIL, and HUD-1. Fannie Mae and Freddie Mac introduced new guidelines for many topics including review of Schedule-A Unreimbursed Expenses and required reserves for borrowers retaining their home as a secondary or rental property.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The FHA has announced new standards for Energy Efficient Homes (EEH) with stretched ratios. This is in conjunction with the Department of Energy’s Home Energy Score.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
On September 14, 2015 the Single Family Handbook (SFH) 4000.1 becomes effective. A change that most will not pick up is the underwriting of HUD REO’s. For those that are not familiar, a HUD REO is a property that was foreclosed by HUD approved mortgage servicer and the property is now owned by HUD. The term REO means Real Estate Owned. These properties are usually sold at auction.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Over four weeks I gave everyone the FHA changes effective September 14, 2015 unless HUD delays the implementation of the changes again. These changes were originally set to take place on June 15, 2015 but HUD issued a delay to September 14, 2015. HUD has taken away the discretionary methodology in calculating a borrower’s income for a wage earner and/or hourly wage earner. Under the new guidelines an wage earner that is earning a specific income consistently that is the borrower’s income. The underwriter must use the actual income. Borrowers being paid an hourly wage underwriters can use the income shown as long as it is being is being paid consistently. If not consistent then the income must be averaged over a twenty four month (24) month period.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
When credit scores are obtainable it must be used to determine eligibility for FHA insured mortgage loans. The scores used are the middle score for a borrower with three scores, or the lower score when a borrower only has two scores. After examining each borrower’s credit in the transaction a decision score must be determined. A mortgage transaction multiple borrowers you must use the middle or lowest score for the borrowers, The decision score determines the loan to value and the pricing of the loan since most mortgages are risk based pricing.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Recently in the news were photographs of different locations in the United States that had an inordinate amount of rain resulting in flooding. In addition numerous tornadoes are hitting various places in the United States and we are now in hurricane season (June 1 to November 30). If a location of the United States is declared a “presidentially declared federal disaster area” and the borrower’s home was materially damaged or destroyed the homeowner and/or tenant(s) can buy another dwelling using the 203(h) section of the act.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.