08.10.08
Minnesota Leads a New HUD Initiative
Minnesota has reached a first-of-its-kind agreement to co-promote new and existing types of FHA mortgages with Federal Agencies. The Minnesota Housing Finance Agency (MHFA), a state agency committed to affordable housing opportunities for low and moderate income Minnesotans and HUD have announced a partnership to promote loans for the target market. The MHFA and FHA recognize that as the housing market has changed and credit has become more difficult, consumers need access to new programs, and they want to make sure the public is aware of these programs.
The goal of the partnership is to improve education for Minnesota real estate professionals so that they are aware of stable and secure FHA-insured mortgage programs that Minnesotans can access. Accordingly, the agencies have agreed to schedule statewide training and information sessions for Lenders, Real Estate Agents and Housing Counselors using both FHA and Minnesota Housing officials. The sessions will increase familiarity and explain availability of both new and existing FHA-insured loans. A major shift in FHA premium charges is now occurring, where borrowers are charged MIP based on their credit risk, rather than the former one-rate flat fee where “one-size-fits-all.” That change will make an FHA loan more affordable for many with lower income, but good credit scores. Another new program, the FHASecure Refinance product, will be available to homeowners with adjustable rate subprime mortgages that are now past due on their mortgages, helping them stay in their homes. The educational programs will also highlight ways the MHFA-HUD partnership can provide FHA’s affordable products to first-time homebuyers and low and moderate income families who wish to purchase homes.
In the past, the Federal and State agencies have operated independently, but this innovative “Memorandum of Understanding” forges a new working relationship and commitment by the combined forces of state and federal governments to local communities.