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White Papers & Articles - Mortgage Solutions

The Rebirth of FHA
by Loa Keenan
The Federal Housing Administration (FHA) was born in the most challenging of economic times. Established in 1934 to combat the rising foreclosure rates of the Great Depression, FHA is experiencing newfound relevance in the turbulence of today’s mortgage crisis. The 21st century goal of FHA, as it was in the 1930s, is to help bring about economic change and offer a more secure future for homeownership. However, this is not your grandfather’s FHA.
HERA—A Herculean Effort to Stabilize the Ailing Housing Market
by Tammy Campbell
The Housing and Economic Recovery Act of 2008 has been called the most significant piece of housing legislation in more than a generation. Its acronym, HERA, conjures up images of ancient mythology; and perhaps rightly so, as HERA is epic in both size and scope. At roughly 275 pages, the act covers everything from FHA modernization and GSE reform to tax incentives and foreclosure prevention. This article briefly summarizes some of HERA’s major provisions, highlighting some of the more controversial aspects of the new law
RESPA: New and Improved! HUD’s Selling, Is Anyone Buying?
by Tammy Campbell
Even the Madison Avenue ad agency executives from the AMC television series Mad Men might have a difficult time selling the mortgage industry on HUD’s new RESPA rule. The effort to reform the 34-year old law began in 2002. President Bush, speaking from the Rose Garden late in 2007, promised new mortgage rules as part of a plan to address the country’s already rising foreclosure rate. However, HUD’s latest proposal, published in March, faced significant criticism from the industry and some lawmakers. Despite such opposition, the rule became final on November 12, 2008 and is effective January 16, 2009 (although lenders have until January 1, 2010 to implement the new disclosure formats). This article summarizes the rule’s major provisions and offers some thoughts about what may happen when the Obama administration takes office in January 2009.