https://propmodo.com/tighter-fha-loss-mitigation-rules-could-push-250000-into-sales-or-default/
Trump stops "unlimited" use of partial claims - which allowed FHA borrowers to roll unpaid monthly balances (up to 30% of the value of the mortgage) back into the loan (effectively) an unlimited number of times -- interest free.
Under the new Trump administration rules, this can only happen once every 2 years and is limited to 25% of the loan. They also have to pay in full 3 continuous months before they can apply.
Trump also stopped the Biden practice of forcing borrowers with higher credit scores subsidizing the risks of those with lower credit scores.
Expect to see the backlog of properties to show up on the market starting relatively soon lowering prices and increasing availability.
Good Trump, although I think this is still way too generous as taxpayers still end up subsidizing interest free loans.
But good to see any action taken to reduce the chance of another financial/housing crisis.
Trump stops "unlimited" use of partial claims - which allowed FHA borrowers to roll unpaid monthly balances (up to 30% of the value of the mortgage) back into the loan (effectively) an unlimited number of times -- interest free.
Under the new Trump administration rules, this can only happen once every 2 years and is limited to 25% of the loan. They also have to pay in full 3 continuous months before they can apply.
Trump also stopped the Biden practice of forcing borrowers with higher credit scores subsidizing the risks of those with lower credit scores.
Expect to see the backlog of properties to show up on the market starting relatively soon lowering prices and increasing availability.
Good Trump, although I think this is still way too generous as taxpayers still end up subsidizing interest free loans.
But good to see any action taken to reduce the chance of another financial/housing crisis.
