Mortgage Financing

Mortgage Financing

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The U.S. Dept. of Housing a Urban Dev't. (HUD), through its Fed. Housing Admin. (FHA), provides insurance for private lenders against losses on home mortgages. FHA's largest insurance program is the Mutual Mortgage Insurance Fund, which currently is self-financed a operates at a profit. FHA submitted a re-estimateA“ of $7 billion for the credit subsidy a interest for the Fund as of the end of FY 2003, reflecting a reduction in estimated profits. Given this substantial re-estimate, this report determines what factors contributed to the $7 billion re-estimate a the underlying loan performance variables influencing these factors. Also, assesses how the loan performance variables underlying the re-estimate could impact future estimates of new loans. Illus.FHAa#39;s $7 Billion Reestimate Reflects Higher Claims and Changing Loan Performance Estimates William B. Shear ... For example, FHA changed its up- front mortgage insurance premium rules for mortgages endorsed after December 2004. ... For new loans guaranteed after December 2004, FHA will no longer refund a percentage of the up-front premium to ... These changes could encourage borrowers to refinance their mortgage with another FHA-insured loan, while reducing theanbsp;...

Title:Mortgage Financing
Author:William B. Shear
Publisher:DIANE Publishing - 2006-03


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