Richard's Real Estate Thoughts - Chattanooga TN Mortgage Lender: January 2010

HUD announces tighter FHA lending standards

HUD issued a press released today announcing changes to be published in a mortagee letter tomorrow. Most of these changes have been discussed in the industry over the last several months and were anticipated.

Here is a summary.

  • Up front mortgage insurance increased to 2.25%
  • Seller concessions will be reduced to 3%
  • New borrowers with less than 580 scores will require a 10% downpayment

The changes will also increase lender liability for loan performance.

There will be a comment period before the changes to the seller concessions and the increased down payment for borrowers with lower scores are implemented.

Of these changes the seller concessions will have immediate impact on buyers, although increased lender liability and tighter enforcement of lender performance may very well prove to be the more lasting and significant change.

These changes are expected to be in effect in the Spring and early Summer. These changes are likely to be just the first of more FHA enhancements.

Richard Smith
NMLS 184479

Cell:
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Toll Free: 888-474-9920
Office: 423-899-6898

American Acceptance Mortgage, Inc
NMLS 132505, TN/GA Licensee

Email: rsmith@aamonline.com

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Richard Smith
NMLS# 184479 TN# 104002 GA# 28928 

Conventional, FHA, FHA 203k, HUD $100 down purchases, VA,

Rural Development ( USDA), and Jumbo Loans


Lending in Chattanooga, Tennessee and Georgia for over 20 years.

Sierra Pacific Mortgage

Cell phone: 423-280-0345 Email: Richard.Smith@SPM1.com

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This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Sierra Pacific Mortgage. 

Comment balloon 4 commentsRichard Smith • January 20 2010 02:42PM
HUD announces tighter FHA lending standards
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HUD issued a press released today announcing changes to be published in a mortagee letter tomorrow. Most of these changes have been discussed in the industry over the last several months and were anticipated. Here is a summary. Up… more