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Obama Moves Left With New Housing Finance Agency Pick Mel Watt

by on May 5, 2013

President Obama has nominated Rep. Mel Watt to head the Federal Housing Finance Agency

President Obama has nominated longtime Rep. Mel Watt (D-N.C.) to head the Federal Housing Finance Agency, the organization responsible for administering Fannie Mae and Freddie Mac. Watt has long been an advocate for various affordable housing initiatives in Congress. DeMarco, who had been the agency’s acting director since 2009, had been coming under increasing fire from Democrats for resisting calls to cram down mortgage balances. . . .

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Obama’s 2014 HUD Budget – The Winners and Losers

by on April 23, 2013

How does the president

The Obama administration has forwarded its 2014 budget request to Congress – two weeks late, and it has big ramifications for housing. The top line figures, including all on-budget federal spending, add up to $3.77 trillion in total spending. The deficit, according to the president’s own proposal, will add up to $744 billion. Boiling things down to the housing budget, the president is asking for $47.6 billion for the . . .

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Streamlined Loan Modification: Discouraging Responsible Homeowners?

by on April 9, 2013

The new streamlined modification initiative could frustrate homeowners who have struggled to stay on top of mortgage payments

The Federal Housing Finance Agency unveiled a new program last week that will enable Fannie Mae and Freddie Mac borrowers to lower their mortgage payments if they’ve fallen behind. The program, called the Streamlined Modification Initiative, will require all servicers whose borrowers are 90 days delinquent or more on their mortgages to offer them an easy way to lower their payments. The kicker: There will be no financial qualification requirements, and . . .

Read more about The Streamlined Modification Initiative

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FHFA Head Defends Principle of Moral Hazard Against Populist Reformers

by on March 26, 2013

The head of the Federal Housing Finance Agency has resisted calls for widespread principal reductions on struggling, underwater mortgages

Ed DeMarco, the acting head of the Federal Housing Finance Agency, has resisted calls for widespread principal reductions on struggling, underwater mortgages. As the agency’s acting chairman, DeMarco is essentially the conservator responsible for preserving Fannie Mae and Freddy Mac. That’s nothing new. DeMarco’s been a target of their ire for some time. . . .

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Consumers Lose in Battle Over ‘Force-Placed’ Insurance

by on March 5, 2013

The Federal Housing Finance Authority voted not to reform a controversial arrangement in which favored insurers routed rebates, or kickbacks, to lenders who route insurance business to them.

Over the last year, a great struggle occurred between big lenders on one hand, and ordinary homeowners on the other. The battle reached its climax in February. And it’s no surprise who won and who lost. The Federal Housing Finance Authority voted not to reform a controversial arrangement in which favored insurers routed rebates, or kickbacks, to lenders . . .

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HARP 3.0 Bill Reintroduced in Congress

by on February 19, 2013

Legislation has been reintroduced to create an expanded version of HARP, or the Home Affordable Refinance Program

Two Democratic senators, Sen. Robert Menendez of New Jersey and Sen. Barbara Boxer of California, have reintroduced legislation that would create a new, expanded version of HARP, or the Home Affordable Refinance Program. The original HARP, and its expanded successor HARP 2.0, helped fuel the refinancing boom that propped up the mortgage and . . .

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For Real Estate Investors: What Does the IRS Look for in an Audit?

by on February 5, 2013

Real estate investors can prepare for an IRS audit, and save money on taxes, by keeping accurate business records

It wasn’t raining when Noah built the ark. Likewise, you shouldn’t be waiting until you get an audit notice to get your paperwork together, gather receipts, dot your i’s and cross your t’s. Understand that the federal government is hungry for money just now. For all the talk of recovery (how many “recovery summers” are we at just now?), tax revenues . . .

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Feds Pass “Ability-to-Pay” Mortgage Rule

by on January 22, 2013

ability to repay mortgage rule

Waiters, it’s time to start declaring all your tips again. At least, if you want to buy a home under the new mortgage regulation regime. Earlier this month, the Consumer Finance Protection Bureau – the watchdog brainchild of now-Senator Elizabeth Warren – passed a set of new regulations called the ability-to-repay rule, which, in part, requires mortgage lenders . . .

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The Fiscal Cliff Deal: The Quick and Dirty Guide for Real Estate

by on January 8, 2013

the fiscal cliff and real estate

Congress passed a temporary fix to avoid the Fiscal Cliff last week. Let’s look at some of the key provisions in the deal and how they will apply to the real estate community. . . .

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Uncle Sam Wants YOU … to Keep Flippin’ Houses

by on January 1, 2013

flipping houses

Uncle Sam wants you … to flip houses. That’s what the Federal Housing Administration told the country at the end of November. On November 29, the FHA announced that it was extending the waiver of Regulation 24 CFR 203.37a(b)(2) for another two years. The waiver will allow the use of FHA mortgages to support the purchase of homes that are being . . .

Read more about The Waiver of the “Anti-Flipping Rule”

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