mn mortgage: FHA Adjusts Neighborhood Watch For Obama’s Refinance Plan
- 02/01/12 06:22 AM
FHA Adjusts Neighborhood Watch For Obama’s Refinance Plan The Federal Housing Administration (FHA) announced that it will no longer rank mortgage lenders based on performance of “streamlined” loans in its Neighborhood Watch system, in an effort to open up the program for more families. Currently, FHA borrowers are allowed to refinance under the existing streamline program without a new appraisal, credit report or documentation, which is customary for standard refinances. However, as Guaranteed Rate reported earlier, due to FHA’s Neighborhood Watch, lenders have been denying some of these borrowers because it could compromise their status as FHA-lenders. By removing these streamlined … (1 comments)
mn mortgage: Credit Scores vs. Neighborhood Watch
- 01/25/12 06:17 AM
Credit Scores vs. Neighborhood Watch The Federal Housing Administration is requesting lenders to relax their credit score minimums. Currently the average credit score on an FHA-insured mortgage is 700. If lenders allow a lower credit score to qualify for a FHA loan, more borrowers would be able to own a home. However, lenders are requesting that FHA change their lender/monitoring system known as Neighborhood Watch. Developed in the 1990s to protect low to moderate income communities from predatory FHA lenders, the Neighborhood Watch compares a lender’s performance to average default rates for all FHA loans. If lenders have a high default … (0 comments)
FHA Adjusts Neighborhood Watch For Obama’s Refinance Plan The Federal Housing Administration (FHA) announced that it will no longer rank mortgage lenders based on performance of “streamlined” loans in its Neighborhood Watch system, in an effort to open up the program for more families.
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