Posts Tagged ‘HUD’

Government OKs $600 Million in Housing Aid for 5 States

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The Obama administration plans to send $600 million to help unemployed homeowners avoid foreclosure in five states.

The Treasury Department said Wednesday that mortgage-assistance proposals submitted by North Carolina, Ohio, Oregon, Rhode Island, and South Carolina received approval. The states estimate their efforts could help up to 50,000 homeowners.

The administration is directing $2.1 billion from its existing $75 billion mortgage assistance program to a total of 10 states. Each state designed its own plan. Treasury approved money in June for Arizona, California, Florida, Michigan, and Nevada.

“These states have designed targeted programs with the potential to make a real difference in the lives of homeowners struggling to make their mortgage payments because of unemployment,” Herbert Allison, an assistant treasury secretary, said in a statement.

More aid to the unemployed is coming. The sweeping financial reform bill passed signed into law by President Barack Obama last month provides an additional $3 billion to help jobless homeowners pay their mortgages.

Of that money, $2 billion is coming from Treasury’s foreclosure-prevention effort. The rest is to be managed by the Department of Housing and Urban Development.

Source: Alan Zibel (HouseLogic.com)


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Homeless Grants Awarded Nearly $1.4 Billion

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The Obama Administration today announced that the U.S. Department of Housing and Urban Development (HUD) is renewing grant funding needed to keep thousands of local homeless assistance programs operating. HUD Secretary Shaun Donovan said a total of nearly $1.4 billion will help an unprecedented 6,445 programs to continue offering critically needed housing and services to homeless persons and families.

The grants announced today are being awarded through HUD’s Continuum of Care programs.  For the first time ever, HUD is quickly providing renewal grants to local programs to prevent any interruption in federal assistance and will announce funding to new projects in early 2010.  For a local summary of the grants announced today, visit HUD’s website.

“As we move into the coldest time of the year, it’s critical that no program risk running out of money to keep their doors open,” said Donovan.  “These grants will make certain that those programs on the front lines of helping the homeless have the resources they need to house and serve persons who might otherwise be forced to turn to the streets.”

Barbara Poppe, Executive Director of the U.S. Interagency Council on Homelessness, said, “Today we extend the federal partnership with communities to meet demand  for homeless assistance and support programs that successfully end homelessness. This public-private partnership has demonstrated tremendous success at ending chronic homelessness and we are now working to build partnerships to end homelessness among veterans and prevent family, youth, and child homelessness.”

More on HUD’s Continuum of Care Grants.

More on the Homeless Prevention and Rapid Re-housing (HPRP) Program.

Source:  U.S. Housing and Urban Development



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New HUD rules to help consumers save $$$

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The Department of Housing and Urban Development (HUD) has released an updated version of a booklet that’s intended to help consumers comparison-shop for a mortgage.

Much of the 49-page publication, “Shopping for Your Home Loan: HUD’s Settlement Cost Booklet,” is devoted to the new standardized Good Faith Estimate and HUD-1 settlement statement forms that lenders must begin using on Jan. 1.

The forms and other changes to implementation of the Real Estate Settlement Procedures Act (RESPA) are intended to help consumers comparison shop. HUD believes the new RESPA rules, which encourage lenders to package settlement services like title insurance with loans, will save consumers an average of nearly $700 in costs and fees per mortgage.

The new RESPA rules place restrictions on changes to estimated loan origination and settlement service charges as disclosed on the GFE. The RESPA rule changes also require that mortgage brokers disclose “yield spread premiums” — rebates paid by lenders when borrowers take out loans at higher interest rates than they could qualify for — and credit them against a borrower’s closing costs.

HUD has posted a RESPA “FAQ” — answers to “frequently asked questions” — and other information on a dedicated RESPA page to help lenders, settlement services providers and consumers understand the new rules.

Source: Inman News


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A Nationwide Campaign Kick-Off starts today to help more struggling homeowners

OBAMA ADMINISTRATION KICKS OFF MORTGAGE MODIFICATION CONVERSION DRIVE

The U.S. Department of the Treasury and Department of Housing and Urban Development (HUD) today kick off a nationwide campaign to help borrowers who are currently in the trial phase of their modified mortgages under the Obama Administration’s Home Affordable Modification Program (HAMP) convert to permanent modifications.

The modification program, which has helped over 650,000 borrowers, is part of the Administration’s broader commitment to stabilize housing markets and to provide relief to struggling homeowners and is a primary focus of financial stability efforts moving forward.

Roughly 375,000 of the borrowers who have begun trial modifications since the start of the program are scheduled to convert to permanent modifications by the end of the year. Through the efforts being announced today, Treasury and HUD will implement new outreach tools and borrower resources to help convert as many trial modifications as possible to permanent ones.

“We are encouraged by the pace at which trial modifications are now being made to provide immediate savings to struggling homeowners,” said the new Chief of Treasury’s Homeownership Preservation Office (HPO), Phyllis Caldwell. “We now must refocus our efforts on the conversion phase to ensure that borrowers and servicers know what their responsibilities are in converting trial modifications to permanent ones.”

In her new role, Caldwell will lead HPO’s conversion drive efforts. “Encouraging borrowers to move through the process of converting trial modifications to permanent modifications remains a top priority for HUD,” said HUD Assistant Secretary for Housing and FHA Commissioner David Stevens. “As a part of our continuing efforts to improve the execution of the HAMP program, HUD is committed to working with servicers, borrowers, housing counselors and others dedicated to homeownership preservation to improve the transition of distressed homeowners into affordable and sustainable mortgages.”

With tens of thousands of trial modifications being made each week, the Administration is now working to ensure that eligible borrowers have the information and the assistance needed to move from the trial to the permanent modification phase. (All mortgage modifications begin with a trial phase to allow borrowers to submit the necessary documentation and determine whether the modified monthly payment is sustainable for them.)

As the first round of modifications convert from the trial to permanent phase, the Administration has identified several strategies for addressing the challenges that borrowers confront in receiving permanent modifications.

In addition to the conversion drive that kicks off today, the Obama Administration has already taken several steps to make the transition from trial to permanent modification easier and more transparent by:

* Extending the period for trial modifications started on or before September 1st to give homeowners more time to submit required information;

*Streamlining the application process to minimize paperwork and simplify the submission process; meeting regularly with servicers to identify necessary improvement to borrower outreach and responsiveness;

* Developing operational metrics to hold servicers accountable for their performance, which will soon be reported publicly;

* Enhancing borrower resources on the MakingHomeAffordable.gov website and the Homeowner’s HOPE Hotline (888-995-HOPE) to provide direct access to tools and housing counselors.

Find out more about The Mortgage Modification Conversion Drive.

Source: MakingHomeAffordable.gov


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Loan Modifications

Everyone has heard of Loan Modifications.  The good…the bad…and the ugly.

But what are they… exactly?   And how can you benefit from them?

Check out the FAQs from the US Dept of Housing and Urban Development (aka…HUD).