FHA Forward MAX              115% of the MSA

Median Home price as determined by HUD.

(In High Cost Areas, the maximum loan amount will not exceed $625,500 regardless of MSA Median Home Price)

FHA Reverse                        $417,000

Hope for Homeowners        $550,440
 
US Treasury to Purchase Mortgage Backed Securities from FNMA, FHLMC, and GNMA  - On November 25, 2008, the Federal Reserve Board and the US Treasury announced they would purchase mortgage backed securities to reduce the cost of credit, support housing and increase the availability of credit. The purchases of these assets will take place over several quarters and more details will be released after consulting with market participants.
 
OCC, FRB, FDIC, OTS, NCUA proposed to update the Interagency Appraisal and Evaluation Guidelines - Appraisals and evaluations of property used as collateral for mortgage financing continues to go through reform to insure the appraisals and valuations reached are independent of unjust influence. The last time the interagency guidelines were revised was back in 1994; however, since 1994, technology, lax underwriting criteria, and a patchwork of guidance relative to appraisal standards have changed dramatically over the years. On November 20, 2008, the joint agencies published in the Federal Register the proposed update to the Interagency Appraisal and Evaluation Guidelines. This proposal is designed to revamp all of the patchwork from the Appraisal Institute throughout the years, include technology such as the use of automated valuation models (AVMs) and Tax Assessed Valuation (TAVs) and defining appraisal independence from loan production as well as from underwriting. The comment period is open for 60 days. All comments must be submitted by January 20, 2009. This initiative is similar but separate from the Home Valuation Code of Conduct (HVCC) which is estimated to be implemented on March 1, 2009. Because the Home Valuation Code of Conduct only applies to FNMA and FHLMC, and the proposed rule covers all regulators many argue the proposed rule will be more uniform and sound. Click on the link below to read the official proposal.
 
CLICK HERE TO READ THE OFFICAL PROPOSAL 
 
HOPE FOR HOMEOWNERS EXPANDING CRITERIA PROPOSED TO CONGRESS - It has been just over 60 days since the Hope for Homeowners program went into effect. Many housing counselors, borrowers, and loan servicers have had a great deal of difficulty getting this program off the ground. The Hope For Homeowners Program is voluntary for the existing lender(s). Those that are willing to participate have been resistant because of the amount of the write off is much larger on average than anticipated. Therefore the 90% maximum LTV is not enough for existing lenders to participate and found foreclosure to be a more attractive option. Therefore HUD is asking Congress to consider some modifications to the Hope For Homeowners Program to encourage more participation from lenders and qualify more homeowners. The following enhancements have been proposed: