E-Notes from HUD's Detroit Field Office
February, 18 2004
U.S. Department of Housing & Urban Development
Toni D. Schmiegelow, Field Office Director
The March 10th Federal Register included a long-anticipated final rule permitting HUD to expand its offerings of adjustable-rate mortgage (ARM) products. Effective April 9th, FHA-insured homebuyers now will be able to choose ARMs with periods of three, five, seven or ten years, depending on their needs, during which time the interest rate would be fixed. Some 40,000 families a year are expected to use the new ARMs. Under the rule, the interest rate for 3- and 5-year ARMs cannot change by more than one percent per year after the fixed-payment period is over, with a maximum change of five percent for the life of the loan. For 7- and 10-year ARMs, the maximums are two percent annually and six percent for the life of the loan. Until now, the only FHA-insured ARM had a one-year fixed rate, with caps of one percent a year and five percent for the remainder of the loan. That ARM will still be available. For more, read HUD Mortgagee Letter 2004-10 at www.hudclips.org.
! ! ! NEWS FLASH! ! !
Tuesday, March 30th Federal Register published Interim Rule launching American Dream Downpayment Initiative effective April 30th.
President Bush says HUD and Department of Health & Human Services awarded record $1.1 billion to faith- and community-based groups last year . . .U.S. Senate unanimously confirms Alphonso Jackson as HUD's 13th Secretary. Jackson promised to continue building on the nation's record homeownership rate, increasing access to affordable housing for low-income families and improving sound management practices within HUD.
~ DETROIT MONEY SMART WEEK ~The Detroit Branch of the Federal Reserve Bank of Chicago, along with twenty-six local organizations, has joined together to create Money Smart Week. A variety of educational seminars will be held throughout Detroit to inform consumers about managing their personal finances. Money Smart Week is April 22-30, 2004. Check this website for full list and schedule of course offerings: www.chicagofed.org/moneysmart.
WHAT THE HECM!
The March 25th Federal Register published an interim rule allowing, effective April 26th, FHA-insured Home Equity Conversion Mortgages (HECM) or "reverse mortgage", to be refinanced with a reduced mortgage insurance premium. The provision will allow elderly homeowners whose homes have increased in value since closing on first HECM to withdraw more equity when values rise. It also waives counseling requirement for some HECM refinancings.
BRIEF BRIEFS, TOO
Citing comments from Congress and consumer groups, HUD Secretary Jackson withdraws proposed RESPA reform rule for resubmission after "complete vetting"
NEW HOUSING GOALS PROPOSED FOR FANNIE MAE AND FREDDIE MAC
April 5, 2004: The U. S. Department of Housing and Urban Development sent Congress its recommendations for new housing goals for Fannie Mae and Freddie Mac. The proposed rule was sent to the Chairs and Ranking members of the Senate Banking and House Financial Services Committees. Congress will review the proposed rule for 15 days before it is published in the Federal Register. Following a 60-day public comment period and after consideration of comments received, HUD will publish a Final Rule before it takes effect in 2005. For the complete release go to http://archives.hud.gov/news/2004/pr04-033.cfm.
The Detroit Multifamily Hub closed on two developments in Metro Detroit during March. Chippewa Court, a 12- unit Section 811 Capital Advance grant for the amount of $912,900, will be located in Port Huron Township. The Mortgagee is HUD; the Mortgagor is Chippewa Court Non-Profit Housing Corporation. Also closed, an 82-unit FHA-insured project, Walton Wood of Royal Oak, located in Royal Oak, financed pursuant to Section 232/223F. The project has a Mortgage amount of $10,485,800. The Mortgagee is St. James Capital; Mortgagor is Waltonwood of Royal Oak L.L.C.GRANTS
Clinton Township was awarded $641,000 in CDBG funds; Redford Township was awarded $1,161,000 in CDBG funds. The Section 108 for City of Detroit's Mexicantown Welcome Center project has been approved for $7,890,000 and $250,000 EDI and result in the creation 247 new, permanent full-time jobs.
|Content Archived: July 29, 2011|