Category Archives: Credit

FHA Policy Change Helps Unemployed Borrowers – July 25, 2011

The Federal Housing Administration, FHA, recently changed its policy concerning the forbearance period for unemployed borrowers, the Obama Administration announced this month.  FHA will require loan services to increase the forbearance time period to 12 months for unemployed borrowers trying to keep their homes while looking for work.  Additionally, the White House administration intends to require the same forbearance period for loan services and borrowers participating in the Making Home Affordable Program (MHA).  According to FHA:  ”Today, 60 percent of the unemployed have been out of work for more than three months, the minimum forbearance period in MHA’s current program…. Read More »

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FHA to Increase Mortgage Insurance Premiums – February 16, 2011

The Federal Housing Administration announced on Monday an increase to it’s mortgage insurance premium (MIP) rate structure. The annual MIP will increase by a quarter of a percent (0.25). According to FHA, the annual premium increase will help FHA’s capital reserves, as mandated by Congress. The MIP increase will only apply to new loans originated on or after April 18, 2011. Read more…

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Changes in Credit Scoring Method in ‘08

Credit reporting agencies will soon be using a new algorithm to better predict credit risk or worthiness of a borrower.  The new algorithm, introduced by Fair Isaacs, Inc of Minnesota, could help some consumer’s credit scores while others may drop.  The new calculation is being reported as more forgiving of a one-time negative occurrence, when balanced by a strong credit history.  You can read more about managing your credit and credit score in an article from The Denver Post.

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