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In recent days, stakeholders have come nearer to agreed on certain facets of housing finance legislation reform. However, many differences still exist. Lots of housing bill bills are currently pending in both houses of Congress and there's still deadlock about the taxation provision for home mortgage aid. Although, it is expected that at some stage, the enacted housing bills will be voted out of committee and into the final house of Congress. There's a need therefore for the housing industry to be well prepared for the changes which are to come.The House and Senate recently passed a Joint Resolution (JSR) proposing a number of changes from the FHA Home Loan Program that will ultimately influence the housing industry. The House has passed the joint resolution with a vote of 401-5; the Senate hasn't passed the exact same resolution. The Joint Resolution is focused on changing the FHA's Home Affordable Program (HAP) by increasing certain housing features, eliminating or reducing unnecessary fees, and loan restructuring programs. 오피 The upgraded housing features will, if passed on, change the home fund actions of FHA guaranteed borrowers.The most publicized quality of the Joint Resolution is the provision which will enable FHA insured homeowners who use a manufactured home or a Yurt to be treated as other residential properties. Many housing experts think this change, if it is passed, will create the loss of several manufactured homes and manufactured home owners to the FHA. Although, this concern hasn't been addressed yet. For the time being, homeowners who use a Yurt or a manufactured dwelling that is subject to this MMCAD app can continue using their homes as they are in these applications.The second proposed change is to raise the maximum loan amount for first time buyers and decrease the rate for adjustable rate mortgages or ARMs. Currently, there is absolutely no limit on the amount which can be borrowed and there's absolutely no limit on the interest rate. Manufactured housing investors have a difficulty when prices rise because this directly reduces the liquidity of their investment. ARM's were designed to be an easy, low cost method for households to own residential property. When housing prices fall, so does the value of ARM's; hence, they aren't a good investment.The third proposed change would be to allow FHA Guaranteed Loans to include unconventional residential loans such as those from credit unions, co-ops and small lending institutions. Currently, FHA does not make any agreements with these lenders and does not accept Guaranteed Loans. There are about thirteen different co-ops and credit unions with Secured Loan programs. These businesses offer a variety of different home finance options for homeowners.The fourth change is to eliminate the current revenue verification process and replace it with an automated revenue verification system that is available for FHA insured borrowers. Currently, the income confirmation is used to ensure that the program is consistent with the specific consumer criteria of the Housing Finance System. This is also utilized to determine whether or not a borrower is able to qualify for the mortgage according to their existing employment and earnings.The final step in this analysis is to analyze the credit risk of each guarantor. The current guidelines allow FHA insured borrowers to borrow cash from all mortgage guarantors, such as commercial property lenders, unless otherwise stated. According to the current guidelines, the three main credit risk groups are the high risk, moderate risk, and the minimal risk. The criteria for each credit risk category are based on the current fiscal and creditworthiness of each guarantor's business and credit history.As we've observed, the current guidelines are insufficient in regulating the actions of mortgage guarantors. To effectively navigate the present mortgage guarantor market, it is important for mortgage brokers and agents to understand the several differences in the credit risk categories and how these differences relate to the various programs offered by different guarantors. Mortgage brokers and agents need to have an understanding of how to assess the creditworthiness of mortgage guarantors then build an application package which best matches the requirements of the borrower and the current housing industry. With an comprehension of the present mortgage guarantor guidelines can help mortgage brokers and agents make sound lending decisions throughout the current poor economic times.
