FHA will undergo some changes

By
KC Haririan, Lender
Published: September 18, 2009Posted in: FinanceTags:

The Federal Housing Administration, which insures lenders against losses on home mortgages, announced Friday that it would tighten credit requirements but said it has enough reserves to handle expected claims.
The FHA has taken a much bigger role in the mortgage market during the past two years, as investors have shied away from home loans that lack government backing. In this year’s first half, about 19% of new home mortgages were insured by the FHA, up from about 2% in 2006.

Other changes worth mentioning:
• Appraisals will be valid for no more than four months, down from six months previously
• Lenders would need to show net worth of at least $1 million, up from $250,000 currently
• New requirements for verifying income will be implemented soon
• LTV limits for refinancing FHA mortgages will be increased to 125%
• FHA to hire a Chief Risk Officer for the very first time

The FHA earlier reported that in July 7.8% of the single-family mortgages it insured were 90 days or more overdue or in the foreclosure process, up from 6.6% a year earlier. For the second quarter, about 8% of all home mortgages were 90 days or more past due or in foreclosure, according to a survey by the Mortgage Bankers Association.

About the Author

KC Haririan, Lender KC has access to the best loan products available in the industry. What makes KC's job rewarding is his willingness to go above and beyond the call of duty in making the loan process as smooth and efficient as possible. KC has been in the financial services industry since 1996 helping his clients with a variety of needs such as investments, mortgages, insurance, and other financial products. KC received his CERTIFIED LOAN OFFICER® designation from the Mortgage Bankers Association of Alabama in 2005. KC is a graduate of Auburn University with an MBA in Finance. KC’s drive for excellence and his years of experience, combined with a desire to help others, create a unique opportunity for clients who are looking for a trusted advisor for their mortgage needs. His technical expertise allows him to offer financial solutions that are correct and practical. KC has the heart of a teacher and enjoys working with people; especially first time homebuyers. KC's goal is to be the best Christian husband, father, and a friend he possibly can. KC and his family have been attending Church of the Highlands for the past three years. He is very involved in serving at the church - AND HE LOVES IT!