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» LENDER/SERVICER PROFILE VISIT US ONLINE @ DSNEWS.COM GOVERNMENT AGENCY U.S. Department of Housing and Urban Development (HUD) key personnel Shaun Donovan company vitals HUD Secretary Headquarters: Washington, D.C. Maurice Jones Phone: 800.333.4636 HUD Deputy Secretary Online: HUD.gov Carol Galante The U.S. Department of Housing and Urban Development (HUD) creates a variety of major mortgage, grant, assistance, and regulatory programs with the mission of generating affordable homes and inclusive communities for all Americans. HUD became a Cabinet department in 1965 and today is overseen by its 15th secretary, Shaun Donovan, who was sworn in by President Obama on January 26, 2009. Under the scope of its powers, HUD is responsible for the Federal Housing Administration (FHA) and the Government National Mortgage Association (Ginnie Mae). FHA Commissioner and Assistant Secretary for Housing business summary * Portfolio Stats Take a look inside the numbers » Insurance in force: $1.26T Portfolio Growth Insurance in force » Sept. 2012: $1.26T » Sept. 2011: $1.18T » Annual Change: +6.7% Delinquency Stats » FHA paid out a record $18B in claims in FY 2012 » Six-month redefault rate among loans provided workout in 2011: 13.61% » Loans insured by FHA between fiscal years 2007 and 2009 continue to be most problematic; $70B in FHA claims in 2012 were attributable to loans insured during those years Texas FHA Anti-Flipping Waiver Extended Through 2014 HUD plans to waive the Federal Housing Administration's (FHA) antiproperty-flipping rule through December 31, 2014. The agency is extending the temporary waiver that was put into place in January 2010 for another two years to encourage investors to acquire and renovate foreclosed and vacant homes. FHA rules typically prohibit insuring a mortgage on a home owned by the seller for less than 90 days, but HUD notes that the housing market's downturn led to an outsized rise in defaults, and consequently a rapid increase in vacant foreclosed homes. . . . While the agency's primary goal is to help homeowners remain in their homes, HUD says in cases where that's not possible, waiving the FHA regulation on property flipping will help stabilize neighborhoods and communities where foreclosure activity has been high. —DSNews.com REO Stats » REO holdings: 38,187 properties » Avg. time in inventory: 144 days *HUD and FHA do not service loans; data based on loans insured by FHA as of September 30, 2012, unless otherwise noted Note: September 30 marks the end of HUD's and FHA's fiscal year FHA Loan Limits Unchanged in 2013 Mortgage loans backed by the Federal Housing Administration (FHA) won't change in 2013 for most of the nation. The only exception: a handful of cities in Arkansas and Texas. FHA's loan cap in most areas is $417,000 for single-family homes, though it's higher in selected areas with above-average home prices. FHA's extension of the 2012 caps follows a November announcement from the Federal Housing Finance Agency (FHFA) that maximum mortgage loans backed by Fannie Mae and Freddie Mac would also stay the same next year. For homebuyers, the cap represents a cutoff point for less expensive loans. Home purchases that require a loan higher than the cutoff require a jumbo loan that usually charges higher interest. In 2012, 50% of home purchase mortgages for African American borrowers and 49% for Hispanic/Latino borrowers were insured by FHA. 6.4% Illinois 3.7% Georgia 3.2% *As of September 30, 2012 business summary* Insurance Programs » FHA insured 1.2M single-family mortgages with a principal balance of $213B in FY 2012 » 734,000 purchase mortgages, down 7% from 2011; 78% first-time buyers » 451,000 refinance transactions, up 7% from 2011; borrowers saved an average of $220/month » 54,000 reverse mortgage transactions insured in FY 2012 *HUD and FHA do not originate loans; data based on loans insured by FHA as of September 30, 2012, unless otherwise noted December 11, 2012 know this 10.1% Florida December 14, 2012 13.4% California company's l atest Loss Mitigation Stats » 337,464 foreclosures averted from October 2011 through June 2012 »Goal of helping 350,000 homeowners avoid foreclosure set for FY 2012 states in portfolio* —FloridaRealtors.org Note: September 30 marks the end of HUD's and FHA's fiscal year 2013 str ategy » Continue to sell pools of defaulted mortgages through Distressed Asset Stabilization Program; committed to selling 10,000 loans per quarter over the next year » Expand use of short sales » Reverse 2001 policy of canceling borrowers' premium payments after a period of less than 10 years while keeping insurance guarantee in effect for full 30-year life of loan; will apply to new loans » Increase annual insurance premium on new FHA loans by 10 basis points Source: U.S. Department of Housing and Urban Development (1/24/2013, 11/16/2012) 97