FHFA's New Guidelines for Short Sales

The FHFA has announced that all existing short sale programs will now be consolidated into one standard program. This short sale program is being issued by Fannie Mae and Freddie Mac in hopes of providing clear guidelines for mortgage servicers that will allow them to quickly and easily qualify eligible borrowers for a short sale. These new guildlines are going into effect on November 1, 2012. Any homeowner who has a mortgage through one of the GSE's will be allowed to sell their home in a short sale if they experience an eligible hardship such as the death of a borrower, divorce or loss of job. These reasons will not require further approval from Fannie Mae or Freddie Mac which helps to prove their commitment to streamlining these types of programs that help homeowners avoid foreclosure. It helps to stabilize communities and the economy.

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FHA Cuts Prices on Streamline Refinancing

The FHA has recently announced price cuts for their Streamline Refinance Program that could benefit anyone with a mortgage insured by the FHA. As of June 11, 2012, the FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) to .01% and it will also reduce its annual premium to .55% for qualified borrowers. In order to qualify, a borrower must be current on their existing mortgage that was endorsed on or before May 31, 2009. This accounts for nearly 3.4 million households. These households pay more than a 5% annual interest rate. If they were to refinance, they could potentially save as much as $3,000 a year. By helping homeowners to reduce their monthly costs, the FHA hopes to help people stay in their homes.

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