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Slow Start For the Hope For Homeowners Program

By
Commercial Real Estate Agent with Matthews Capital Markets NMLS 2415712

Alan Zibel of the Associated Press reported that the results of the FHA Hope For Homeowners Program is underwhelming:

But the early results are discouraging: the government received only 42 applications in the program's first two weeks, according to the Federal Housing Administration. The low turnout was first reported by the industry newsletter Housing Wire. Since the applications take about 60 days to process, no loans have been approved yet.

There were quotes from a former Clinton official, current White House Press Secretary, and yours truly, the ever positive industry cheerleader:

Brian Brady, managing director of mortgage banking and brokerage firm World Wide Credit Corp. in San Diego, said the industry could well accelerate its use of the program in the coming months. Many in the industry "are probably just waiting to see how it works ... Mortgage banking is a monkey-see, monkey-do business. Everybody waits for someone to do it first."

You can read the full story on:

Forbes
Business Week
Yahoo! Finance
CNN Money
CNBC
MSNBC

Comments (9)

Todd Bookspan, MBA
HomeStreet - Scottsdale, AZ
Senior Mortgage Consultant

Brian - ouch. it seems that everyone is waiting to see what the "bailout" brings as if it may be better. Bottom line is that lenders aren't prepared for this one. I anticipate they will get some traction now that they've had a month with the guidelines. It will be interesting.

Nov 03, 2008 02:31 PM
Scott Barr
Pacific Sotheby's international Realty - Newport Beach, CA
Realtor

Brian, this is why you are my hero. Good job at being an expert in your field.

Nov 03, 2008 02:40 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Brian... what's sad is that it should not be a 'money see moneky do' type of thing.  Not after such a program such as the FHA Secure program that came out like a year ago. The H4H program is much better than the FHA secure... and allows more types of clients to qualify. The problem that I see, is that it takes to much work from the currrent loan officer that wants to help the consumer. It comes down to the current lender wanting to participate.. in my opinion, that is the main issue on hand.  To much risk for the loan officer to try and get many approvals, just for the borrower to be shot down by their current lien holder...

jeff belonger

Nov 03, 2008 03:54 PM
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management

Brian,

Thanks for the post. You would think that an application for the program would be included in every delinquent notice from the servicer. But if you're being bailout, why bother?

Nov 03, 2008 07:14 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

"Hope for Home Owners" was a program designed for big headlines and small benefit to home owners.

The government will not make a dent in the foreclosure problem until they add the word "simple" to their lexicon.

I can just see the lawyers who wrote the regs standing around with a good supply of monkey wrenches to throw in the mix.

Nov 03, 2008 10:59 PM
Cheryl Johnson
Highland Park, CA

Brian,

Based on your info here:  http://activerain.com/blogsview/723593/FHA-Hope-For-California-Homeowners-Loan-Program  I've suggested to a few folks that they ought to talk with you. 

People being people, though, I kind of doubt that any of their applications number among the 42 already submitted.

Nov 04, 2008 12:14 AM
Richard Sweum
1st Security Bank - Everett, WA

"voluntary lender participation" is the biggest problem.  If the bank takes bailout money OR wants to keep their HUD relationship, they should have to participate in the program!

Nov 04, 2008 02:39 AM
Brian Brady
Matthews Capital Markets - Tampa, FL
858-699-4590

You would think that an application for the program would be included in every delinquent notice from the servicer.

That's the most pragmatic thing I've heard in ten years.

Nov 04, 2008 03:56 AM
Craig W. Barrett
RE/MAX 100 - Hughesville, MD
Hughesville MD Real Estate

I spoke to a couple of lenders about this program when you wrote about it. None of them seemed motivated to even entertain the idea of pursuing additional information let alone process an application.

Nov 04, 2008 08:40 AM