President Barack Obama has made clear that he understands how paramount the FHA mortgage loan system is for revitalizing the housing markets from a local and national level. Low interest rates and comprehensive FHA loan programs are essential for America to rebuild its credibility with homeowners and new homebuyers. Most mortgage insiders believe that Obama understands the importance of recapturing property values that will help many families get back on their feet. The Obama Administration will likely move quickly to reestablish credibility for American home financing. FHA mortgage rates remain at the lowest levels ever. Today a qualified borrower could take out a FHA mortgage with a fixed interest rate for thirty years at 4.75%.
Many believe that the President should review a few of the FHA home loan products and provisions to see which loan programs are succeeding and which products are missing the mark. Hope for Homeowners was a program passed over the summer as part of the FHA mortgage reform package. In a recent report, FHA loan pros said that as of “October 1st and HUD has allegedly allotted 22 people to the program.” They would not confirm it, but clearly their reports and articles were blowing much needed whistles on the government loan relief programs that were supposed to be saving homes and giving new opportunities to homeowner that were able to qualify for home refinancing.
According to congressional testimony by James A. Heist, HUD’s assistant attorney inspector general for audit, “it is our understanding from the Department that funding for 22 staff positions and approximately $20 million for system improvements have been made available for the Hope for Homeowners program.” Mr Heist does not say HUD has actually deployed 22 people to work on the H4H program, he only says “it is our understanding” that money has been made available for this purpose. This is hardly re-assuring and, in fact, there is no evidence that anyone at HUD is actually doing anything. How do we know? Well HUD’s figures as of December 31st — three full months after the H4H program began — show there have been 370 program applications but that “no Hope for Homeowners cases have been insured to date.” Look for Congress to investigate the Hope for Homeowners program and while they’re at it expect them to review the FHA Secure loans as well. www.contactify.com/b4364
Many believe that the President should review a few of the FHA home loan products and provisions to see which loan programs are succeeding and which products are missing the mark. Hope for Homeowners was a program passed over the summer as part of the FHA mortgage reform package. In a recent report, FHA loan pros said that as of “October 1st and HUD has allegedly allotted 22 people to the program.” They would not confirm it, but clearly their reports and articles were blowing much needed whistles on the government loan relief programs that were supposed to be saving homes and giving new opportunities to homeowner that were able to qualify for home refinancing.
According to congressional testimony by James A. Heist, HUD’s assistant attorney inspector general for audit, “it is our understanding from the Department that funding for 22 staff positions and approximately $20 million for system improvements have been made available for the Hope for Homeowners program.” Mr Heist does not say HUD has actually deployed 22 people to work on the H4H program, he only says “it is our understanding” that money has been made available for this purpose. This is hardly re-assuring and, in fact, there is no evidence that anyone at HUD is actually doing anything. How do we know? Well HUD’s figures as of December 31st — three full months after the H4H program began — show there have been 370 program applications but that “no Hope for Homeowners cases have been insured to date.” Look for Congress to investigate the Hope for Homeowners program and while they’re at it expect them to review the FHA Secure loans as well. www.contactify.com/b4364
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