In our next installment of the Keller Williams reportwe look at FHA Plans to Expand Capacity

Source: hud.gov

Over the past three years, the percentage of FHA-backed loans has skyrocketed from 2% to 24% of all mortgages today.

To cope with the rapid expansion, FHA has requested authority to provide $400 billion in additional FHA insurance. This is anticipated to allow 2.25 million additional mortgages to be endorsed by HUD.

Given additional funds, FHA will be able to keep up with the dramatically increasing demand, and consumers should continue to have access to FHA loans.  Read more | Florida Real Estate | Panama City... (128 words, estimated 31 secs reading time)

As we continue our installments of the Keller Williams report, we review new Obstacles…

Source: The Washington Post

1.

Fannie Mae recently changed its policy concerning job transfers. For some time, Fannie Mae considered the income of a transferred employee’s spouse to qualify the couple for a larger mortgage even if they had not yet found a job. Given the tough job market, Fannie Mae has changed this policy so that income from a “trailing spouse” will not be considered in loan qualification unless a job has been secured and income has been verified.  Read more | Florida Real Estate | Panama City... (190 words, estimated 46 secs reading time)

In this installment of the Keller Williams report: The Numbers That Drive Real Estate, we look at Loan Modification Program.

Source: CNNMoney.com

Announced July 1, the Making Home Affordable Program will now allow homeowners who are up to 125% underwater to refinance their mortgage.  Under the program, the previous limit was 105%.

The industry norm requires at least 20% home equity to refinance.

The bulk of the program’s initial criticism was that the administration did not provide enough support for the millions of homeowners who owed significantly more on their mortgages than their home is currently worth.  Read more | Florida Real Estate | Panama City... (181 words, estimated 43 secs reading time)

As we continue our series on the KW Economic Report, this installment will focus on: Support for Economy

Source: federalreserve.gov

In its last meeting, the Federal Reserve maintained the current record low interest rate.

In a notably more positive report, the Fed sites signs of improvement but qualifies that the storm is not over yet. The interest rate roller-coastered over the past few weeks prompting suspicion of further action by the Fed to stabilize rates.

Walking the tightrope between the need for stimulus and the future potential for inflation, the Fed renewed its commitment to purchase $1.2 trillion in mortgage-backed securities by the end of the year rather than taking additional measures.  Read more | Florida Real Estate | Panama City... (235 words, estimated 56 secs reading time)