Archive for November 21st, 2008
FHA Needs Mortgage Broker Feedback for Mortgage Refinance Products
Posted by: | CommentsIt’s time that FHA mortgage brokers and lenders speak up and provide HUD some feedback for their mortgage refinance products. Let’s be honest, the FHASecure and FHA Hope for Homeowner products have not been able to help the average homeowners struggling to refinance and stop foreclosure. These FHA home loan products look great on paper but when they the lending banks, (ie. Countrywide, Wells Fargo, Chase, etc.) get a hold of these products they implement their additional lending guidelines. As these mortgage lenders tighten the guidelines it makes these FHA loan products irrelevant, because very few homeowners qualify for them.
HUD needs more to gear from FHA mortgage brokers. Tell them why FHA Secure and Hope for Homeowners give the lending community no hope at all. Let HUD know that their products are close to working, but the banks are restricting the refinance programs to a point beyond approving. Let HUD know that if we don’t get some affordable refinancing products that are applicable with today’s economic struggles that we will all be selling mortgage loan modifications that could significantly undermine property values and home equity as we know it. Don’t sit back quietly and let mortgage lending disappear.