Latest FHA (Federal Housing Authority) update...

Recently, the FHA (Federal Housing Administration) made an announcement: Starting April 1 FHA will no longer insure mortgages to borrowers who have an ongoing credit dispute of $1,000 or more on their file.

Consideration for an FHA-backed loan, requires borrowers either:

• Have to pay the remaining balance on the credit dispute or
• Enter into a payment plan, making at least three payments on it.

Any payment plans need to be fully documented and submitted to the FHA, to be included in the debt-to-income ratio for the new mortgage.

Excempt from the FHA’s new rule are:

• Disputed credit accounts from more than two years ago or
• Any accounts related to reported identity theft.

According

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Latest Mortgage market update...

Market Update Week Ending March 23, 2012

Mortgage rates remained volatile this week, mostly due to shifting expectations about future Fed action. Early in the week, mortgage rates continued last week's move higher. Comments from Fed officials helped them recover their losses later in the week, though, and they ended the week slightly lower.

While the Fed does not control mortgage rates directly, it's important to remember that the Fed maintains an enormous influence. Mortgage rates are largely determined by mortgage-backed securities (MBS) prices. One primary reason why MBS have performed so poorly since last week's Fed statement is clear. To boost the economy after the financial crisis, the Fed has taken extreme

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