The FHA has recently announced plans to expand its mortgage lending portfolio and make it easier for people to manage their mortgage loan portfolio.
The announcement comes at a time when mortgage lender Fannie Mae and Freddie Mac have faced financial pressures from the economic downturn and their own credit problems.
Fannie Mae said last week it had $1.7 billion in outstanding loans and Freddie the same day it said it had a $4.7-billion mortgage portfolio.
But with the government’s proposed consolidation of Fannie and Freddie into the Federal Housing Administration (FHA), that mortgage portfolio will be smaller and more complex, potentially putting more borrowers at risk for a loss of income and a reduction in their home equity.
Fannie and the Federal Reserve have made it easier to manage mortgage debt for borrowers by increasing the FHA’s eligibility requirements for mortgages.
But FHA mortgage managers are also required to work with Fannie or Freddie to help them manage the loan portfolios of borrowers, and the agency said it’s working to expand the number of FHA-managed mortgage companies that it provides to borrowers.
“As a result of the consolidation, we are making it easier and more affordable for borrowers to manage and refinance their mortgages,” the FHFA said in a statement.
The agency has also said it will be opening up FHA Loan Management Centers (LMs) to borrowers who may not have the resources to manage mortgages on their own.
As part of the effort to make it simpler for borrowers and mortgage lenders to manage the mortgages they own, FHA recently created a new online application that allows borrowers to apply for mortgage loans.
To qualify for the loan, a borrower must be under age 60 and have no existing mortgage, or be enrolled in a FHA home equity line of credit.
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