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FHA says, "WAKE UP PEOPLE"...

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Mortgage and Lending

I don't know if everyone else has noticed but the Federal Housing Authority is now advertising on Active Rain...What does this mean to us?  It means that the government is actively moving to show the real estate world that they are here to support us getting the market moving again.  It is obvious to all of us at this point that the banks are going to hold out to make as much money on the loans that we are selling them.  So rate cuts by the Fed to the discount rate are not going to effect bringing more buyers into the market, because they don't equate to any real change to what we can offer them.  The banks are still just sucking it up to cover their losses. 

I am very happy to see that the FHA is taking this active role in changing the mindset that exists that FHA is an obstacle to closing loans.  I wondered out loud to my office mate about the idea that this new role may have been kicked off by the housing bill that just passed, but honestly every time I start to read it, I fall asleep.  Whatever has gotten the FHA to start advertising on Active Rain, I for one, really appreciate it.  Anything that gets our names out there in front of the public, associated with the programs that are working to get people into homes, is a really good thing in my book.  I don't have a title for my book yet, but I will keep you posted...LOL...God Bless...Jason

Bill C. Merrell
Merrell Institute ~ Appraisal Education Network - Bohemia, NY
Ph.D. - Merrell Institue

Sounds like they want to keep us up to date and make sure people take advantage of FHA transactions. It has been a secret for many years. Cycles change over time.

Thanks for the great blog.

Keep on blogging and have a wonderful day.

All the best.

Bill

www.merrellinstitute.com

Aug 27, 2008 05:38 AM
Eric Reid
Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

time to take the FHA class .. need to remember all those lender guidelines...

Aug 27, 2008 05:41 AM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

FHA is hot! I expect to close several loans before year-end. It's a great way to go.

 

Paul

Aug 27, 2008 07:54 AM
Jason Roebuck
Springfield, OR

Bill - Thanks for the kind words and yes, it has been a secret that loan officers didn't want to let get out for years because it is principled in giving loans that make sense for the borrowers.

Eric - My recommendation is to just team up with a loan officer in your area that will keep you abreast of any changes and or modifications to the program that may help you sell more homes.

Manders - My community and Home Possible were like a flash in the pan, and almost like a band aid meant to take over until the market came to its senses to remember FHA works.

Paul - Congratulations on having a couple working, it truly is just a matter of getting the word out and letting your customers and realtors know that the program works.

Aug 28, 2008 04:38 AM
Cat Zwicker, CRS
Desert Sky Real Estate, LLC - Redmond, OR
Down to Earth Service; Out of this World Results!

Hey Jason,

    I read the Economic Recovery and Housing Act. It's a great sleep aid, but there is a hidden incentive for FHA to perform/play nice.  The act placed a moratorium on the risk based pricing that FHA had implemented just this past July which is keeping the MIP and up front MI on a level field for all borrowers through 9/30/09.  And as FHA has traditionally been a lenient lender, in the sense you can roll 2yrs out of a BK or have a credit score of 500 and still possibly get bought... this makes them "aces" in my book!  Just be forewarned they are looking at raising the borrower contribution from 3 to 3.5% very soon so have your clients have a little extra on hand just in case!

 So I Agree! Go FHA!  

Aug 28, 2008 04:57 AM