Tag Archives: fha

FHA won’t insure new mortgages with PACE loans

The Federal Housing Administration will stop insuring new mortgages on homes with PACE loans, a type of financing used to fund energy-efficient home improvements.

The announcement Thursday followed criticism from consumer groups that too many borrowers have taken out unaffordable loans for solar panels and other projects after contractors misrepresented how the financing works.

In announcing the policy change, the FHA said PACE loans lack sufficient consumer protection. When a borrower with an FHA-backed mortgage is foreclosed upon, the portion of the PACE loan in arrears must be paid off first.

The remaining PACE loan transfers to the new buyer, but the FHA said that increases the likelihood the buyer will pay less, making it more difficult for the agency to meet its obligations.

read more at: http://amp.miamiherald.com/news/business/article188683574.html

disclaimer: for information and entertainment purposes only

Why does VA and FHA Appraisers condition to no peeling paint – Here is one reason

BALTIMORE — A year after Tiffany Bennett moved into a two-story red brick house at 524 Loudon Avenue here, she received alarming news.

Two children, both younger than 6, for whom Ms. Bennett was guardian, were found to have dangerous levels of lead in their blood. Lead paint throughout the nearly 100-year-old home had poisoned them.

Who was responsible for the dangerous conditions in the home?

Baltimore health officials say it was an out-of-state investment company that entered into a rent-to-own lease with the unemployed Ms. Bennett to take the home in 2014 “as is” — chipping, peeling lead paint and all.

Ms. Bennett, 46, and the children moved out, but they should never have been in the house at all. City officials had declared the house “unfit for human habitation” in 2013.

Throughout the country, tens of thousands of rundown homes have been scooped up by investment companies that have offered high-interest financing or rent-to-own deals largely to poor people. Many of these homes were foreclosed on during the housing crisis.

These investors, however, often put no money toward renovation, or for fixing lead paint problems. The low-income buyers and renters are forced to make all repairs. When there are serious problems with the homes, victims can be required to sign confidentiality agreements to keep them quiet in a settlement after they have been compensated, as happened in Ms. Bennett’s case.

As a result, seller-financed housing contracts have aggravated a persistent problem of lead poisoning among young children in this country.

read more at: http://www.nytimes.com/2016/12/26/business/dealbook/seller-financed-home-sales-poor-people-lead-paint.html?utm_source=huffingtonpost.com&utm_medium=referral&utm_campaign=pubexchange

disclaimer: for information and entertainment purposes only

New Law Eases Condo Lending Requirements

H.R. 3700, the “Housing Opportunity Through Modernization Act,” officially became the law of the land over the weekend with the signature of President Barack Obama.

NAR President Tom Salomone hailed Senate passage of the legislation earlier this month, saying H.R. 3700 will “put the dream of homeownership back in reach for more Americans.”

Realtors® have reason to celebrate today as legislation easing restrictions on FHA financing for condominiums is finally signed into law,” Salomone said. This is a long-awaited victory for NAR and for homebuyers for whom condos are an important and affordable option.”

In particular, Salomone praised sections of the bill that reform current Federal Housing Administration restrictions on condominium financing, noting that condos represent an affordable option for low and moderate-income buyers, as well as first-time buyers. He also showed NAR’s appreciation for the work on Capitol Hill that went into passing the bill.

“NAR thanks Reps. Blaine Luetkemeyer (R-Mo.) and Emanuel Cleaver (D-Mo.), as well as Sens. Tim Scott (R-S.C.) and Robert Menendez (D-N.J.), for helping usher this legislation

Watch a video or read more to get more information at: http://narnewsline.blogs.realtor.org/2016/08/01/video-nar-condo-legislation-signed-into-law/

disclaimer: for information and entertainment purposes only