In response to lenders' requests for additional guidance, the Department of Housing and Urban Development has published a new mortgagee letter that sets a maximum claim amount on the new HECM for Purchase product. The latest directive (ML 2009-11) says the max claim amount will be the lesser of either the home's appraised value, its selling price or the FHA loan limit. It also says the calculation applies to all one-to-four unit properties, and advises that neither the estimate of closing costs nor the initial mortgage insurance premium is to be used in determining the claim amount. HECM for Purchase, which was authorized by the Housing and Economic Recovery Act of 2008, is a form of reverse mortgage that allows seniors 62 or older to move down the housing ladder by selling one house and purchasing another while incurring only one set of closing costs. But the new memo makes it clear that borrowers can have only one principal residence. If borrowers intend to retain their existing house as a rental property, lenders are required to guard against "buy and bail" situations. In addition, major property deficiencies outlined in a previous mortgage letter — no running water, leaking roof, lack of heat and building code violations, to name a few — must be repaired prior to closing.
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The newest addition to the Panorama group of companies aims at offering opportunities to first-time home buyers through wholesale and correspondent channels.
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The government-sponsored enterprise has reportedly added a new vendor to a test in which it buys certain loans without title insurance or attorney opinion letters.
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Federal Reserve Gov. Christopher Waller said that criticisms of the Fed's balance sheet and calls to return to a scarce reserves system are misinformed, saying that much of the central bank's balance sheet is the result of activities outside the Fed's control.
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Several large banks are deploying agentic AI. There's a big difference between managing people and managing AI agents.
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The New Hampshire congresswoman promised new investigations into scam drivers, including AI and digital payment platforms.
11h ago -
The 30-year fixed mortgage rate rose for the first time in six weeks, driven by Friday's strong jobs report and renewed uncertainty around tariffs.
July 10