NCSHA Blogs
Guest Post: What Effect Will Lower FHA Mortgage Insurance Premiums Have on First-Time Homebuyers?
As mentioned in Tuesday’s State of the Union address, the Federal Housing Administration (FHA) announced that it will lower costs of government mortgages by reducing the annual Mortgage Insurance Premium (MIP) rate on most of its new single family home loans by 50 basis points, beginning on January 26. This left many wondering what exactly this means for borrowers and, in particular, what effect it might have on first-time homebuyers who make up a high portion of FHA borrowers and who largely remain on the sidelines.
Secretary Castro: It’s Time to Remove the Stigma from Promoting Homeownership
Declaring 2015 “A Year of Housing Opportunity,” HUD Secretary Julián Castro said yesterday that more must be done to promote affordable homeownership. Delivering a speech at the National Press Club, Castro told the audience that mortgage lending standards have gotten too tight, preventing many creditworthy borrowers from taking out a home loan. He said that the Administration would take action to ensure that more Americans could purchase a home.
President Announces Reduction in FHA Single Family Annual Premiums
President Obama announced in a speech yesterday in Phoenix, Arizona that the Federal Housing Administration (FHA) will be reducing the annual premiums it charges for single-family loans by 50 basis points, from 1.35 percent of the loan amount to .85 percent of the loan amount. The reduction is expected to go into effective sometime this month. HUD has indicated that FHA will publish a Mortgagee Letter detailing the new pricing structure shortly.
FHFA Releases Statement Clarifying its Policy on PACE Program Loans
Earlier today, the Federal Housing Finance Agency (FHFA) released a statement clarifying that it would not allow either Fannie Mae or Freddie Mac to purchase single-family home loans that are subject to a primary lien assessed through a Property Assessment Clean Energy lending program (PACE). Consequently, borrowers with a first-lien PACE loan are not able to refinance into a mortgage guaranteed by Fannie Mae or Freddie Mac. In addition, neither firm will guarantee a loan used to purchase a home that has such a first-lien loan already placed on it.
Congress Approves FY 2015 Omnibus Appropriations Bill
On December 13, the Senate passed the FY 2015 omnibus appropriations bill, H.R. 83. The House approved the same bill on December 11 and the President is expected to sign the bill soon. The omnibus is a package of 11 FY 2015 spending bills, providing funding through the end of FY 2015 (September 30, 2015) for federal agencies, including HUD and the U.S. Department of Agriculture (USDA). Federally funded agencies have been operating under CRs since the fiscal year began on October 1.
FHFA Directs Fannie Mae and Freddie Mac to Begin Making Contributions to the Housing Trust Fund
This morning, the Federal Housing Finance Agency (FHFA) announced it is directing Government-Sponsored Enterprises Fannie Mae and Freddie Mac to begin setting aside and allocating funds to the Housing Trust Fund and the Capital Magnet Fund.
Appropriators Unveil FY 2015 Omnibus Spending Package
Last night, House appropriators unveiled the FY 2015 omnibus, a package of 11 new FY 2015 spending bills, including bills funding HUD and the U.S. Department of Agriculture (USDA) for the remainder of the fiscal year. We expect the House to vote on the legislation December 11, and Senate leaders indicate the Senate will vote on the House-passed bill soon thereafter.
HUD and Treasury Adopt Enhancements to Making Home Affordable Programs
Earlier today, HUD and the U.S. Department of Treasury announced a series of enhancements to several of the programs administered under the Obama Administration’s Making Home Affordable (MHA) initiative. MHA is a multi-agency effort designed to help struggling borrowers remain in their homes through loan modifications and other forms of financial assistance.
CSH Releases 2014 Report Examining Housing Credit Policies that Promote Supportive Housing
In its "Housing Credit Policies in 2014 that Promote Supportive Housing" report, CSH found that "virtually every Housing Credit agency fosters some form of supportive housing development through its Housing Credit program." For the report, which builds on the 2013 report, CSH examined 56 Qualified Action Plans (QAPs). The report defines supportive housing as "permanent housing with attached intensive services targeted to populations with special needs who struggle to retain stable housing without easy access to comprehensive supportive services."
House Passes Bill Extending Expiring Tax Provisions for One Year
Late yesterday, the House passed the Tax Increase Prevention Act of 2014 (H.R. 5771), which would extend for one year only, through 2014, a number of expired tax relief provisions, including the 9 percent minimum Housing Credit rate. The House-passed bill also extends through 2014 the New Markets Tax Credit and a provision exempting homeowners from income tax liability on mortgage debt forgiven or cancelled that would otherwise be taxable.
