Here are a commentary from the president of Nehemiah DPA and an article about the possible demise of such organizations. Although the news story offers a little more of both sides of the story (though did I really expect a commentary to do so?), no one mentions certain DPAs losing their non-profit status because they aren’t actually non-profits. There’s also the fact that it really makes no sense to have DPAs when borrowers could potentially put zero down on an FHA loan. Just looking at the flip side.

My last post was a quick description of FHA backed reverse mortgages and what do I find today? An article about all of the folks benefiting from reverse mortgages.

Since 1990, more than 308,000 senior homeowners have used HUD’s reverse mortgage program, which covers almost 90% of the reverse mortgage market, to borrow against the equity in their homes, making cash readily available to cover necessary expenses. There has been a 10-fold increase in the number of reverse mortgage loans backed the FHA between 2000 and 2006.

Sure, FHA may have struggled in recent years with its low share in the traditional home loan market, but as far as reverse mortgages go, it is total domination. Or 90% domination, for that matter.

Most of my posts usually revolve around one type of FHA loans – Section 203b Insured Mortgage. So, I thought I would start a series of posts about the other types of loans offered by the FHA. (Translation: Slow news week).

This week: Section 255 Home Equity Conversion Mortgage (HECM) – Reverse Mortgage.

Reverse mortgages allow individuals to borrow against their home equity in the form of monthly payments or a line of credit. Just like the name suggests, instead of paying the mortgage company every month, they pay you.

One very important thing to know about a reverse mortgage is that it’s only for home owners ages 62 and up. Some other requirments are that you must own the property, that it is your primary residence, and that you will have to attend a consumer information session.

So why is an FHA reverse mortgage so special? Because you don’t have to pay it back as long as you maintain the home as your primary residence. With the reverse mortgage industry’s relative newness, an FHA reverse mortgage is one you know you can trust. (See: Subprime Bust.)

Learn more at the HUD Reverse Mortgage page.

Ohio is leading the nation with 3.54% of the states 1.4 million mortgages in foreclosure. The national average is 1.28%. Insert comment on how FHA reform could allow for refinancing for many of these people and save the day.

Okay. I don’t usually have real disagreements with news articles, but this one gave me something to complain about. First off, it’s an interesting article and supports the wise notion to STAY AWAY from subprime ARMs. That being said, there is one sentence that I have an issues with:

For those who have fixed-rate loans, or who passed the strict criteria to get a loan from the FHA or VA, foreclosure and delinquency rates actually fell.

What they are saying is good news, but the mention of the “strict critera” to get a FHA loan is seriously humorous. There’s not even a credit score requirment, for crying out loud. Yes, the FHA has had some problems with excessive red tape, but that is unrelated to whether or not you meet their criteria (and the red tape problem will hopefully be fixed with the passage of the reforms). Point being: it’s not that hard to meet the criteria required to qualify for an FHA loan. In fact, it’s quite easy. Pay your bills. Keep a job. You’re set.

Here’s a report on the overwhelming support for the FHA reforms. With 80% of Americans supporting the bill and the subprime market in shambles, Congress would be grossly misguided not to put this through. I think I express that sentiment in some form or another at least 5 or 6 times a day. Probably more.

Here’s a story out of Dallas about education efforts taking place there. From conferences to home visits, lenders and government agencies are seeing the value in educating borrowers. There’s also a nice little list of “Ways to Avoid Foreclosure.” By the way, has anyone noticed that as soon as a write a post about the importance of educating consumers that is the only news about FHA thereafter? I’m the Nostradamus of FHA news.

Check out this blog entry by Bennett Appraisals on the Active Rain Network. It’s a great little guide to getting an FHA loan for a manufactured home. It covers steps needed for a Title I and Title II loan along with the errors that usually slow the process down. Great source for anyone looking to take out a loan or just wanting to learn more.

This article from the Milwaukee Journal Sentinel bascially repeats everything you and I already know about FHA’s planned comeback, so reading the whole thing may be a bit redundant. However, I’d hop over there just for a look at the graphics. There’s a set of graphs that show the FHA’s downturn and some charts about FHA demographics. These days I feel like these type of things are few and far between and it’s nice having something pretty to look at.

Here’s a piece from Investor’s Business Daily written by the man himself, Alphonso Jackson. It basically covers the idea that all of HUD and the FHA have been promoting, that the American Dream of homeownership is not dead, nor will it be dying anytime soon. It has a lot of the elements from his speech the other day, but in a tasty condensed version.