FHA to extend anti-flip wavier

The Federal Housing Administration (FHA) will suspend its anti-flip rule for another year in order to boost the sale of foreclosed homes. In 2003 HUD issued a rule that prohibited FHA from insuring mortgages on homes that were owned by the seller for less than 90 days. In February 2010 HUD lifted the ban for one year, they just extended the wavier until January 2012.

This rule was designed to avoid flipping properties-buying and quickly re-selling the property to borrowers at an inflated price. Hopefully this extended wavier will help to sell the huge amount of foreclosed homes on the market.

Lisa Scanlon, CSA
942-447-7130
www.ScanlonSigningServices.com

Fannie Mae to impose new charges

In April 2011 Fannie Mae will be applying a new set of charges that could significantly increase closing costs. Some lenders have already started to apply these charges. With an already weak market, this will impact consumers in a negative way, allowing for higher closing costs.

The good news if any is that these fees will not apply to FHA mortgages or mortgages that will be kept by a lender, only those being sold to other lenders will be affected.

Lisa Scanlon, CSA
941-447-7130
www.ScanlonSigningServices.com