HUD No. 08-090
June 25, 2008
FHA AND MINNESOTA HOUSING FINANCE AGENCY SIGN AGREEMENT TO HELP MORE MINNESOTANS ACCESS SAFER GOVERNMENT-INSURED MORTGAGES
Minneapolis- HUD's Federal Housing Administration and the Minnesota Housing Finance Agency (HFA) today announced a first-of-its-kind agreement to promote safer, affordable government-insured mortgages. The Memorandum of Understanding (MOU) forges a working relationship and commitment by the federal and state government to help Minnesotans continue to access safer and more secure FHA-insured mortgages.
"For many years, people in the industry and in state government have expressed the need for a clear, mutually-agreed upon memorandum of understanding between FHA and states for the financing of single family properties," said HUD's Assistant Secretary for Housing-Federal Housing Commissioner Brian D. Montgomery. "This MOU will help people in need right now by harmonizing the work of FHA and the Minnesota Housing Finance Agency, and by making FHA loans more available to those who qualify for them."
As the housing market changes and credit contracts, the MOU between FHA and the Minnesota HFA will establish a partnership committed to increasing access to FHA-insured mortgages throughout the state. Specifically, the MOU allow FHA and Minnesota Housing to schedule statewide training and information sessions for lenders, realtors and housing counselors designed to increase familiarity and availability of FHA-insured loans. Additionally, the MOU highlights ways the partnership can extend FHA's affordable products to first-time homebuyers.
"We have an obligation to do everything possible to help people keep their home or to buy a new home they can afford. This MOU will help people in need right now by harmonizing the work of FHA and the state housing finance agency, and by making FHA loans more available to qualified borrowers," Montgomery stated.
FHA continues to see a significant increase in business in Minnesota. In the first quarter of calendar year 2008, there was a 126 percent increase in the number of loans FHA insured in Minnesota compared to the same period last year.
Since September 2007, FHA has insured nearly 250,000 refinanced loans nationwide. In July 2008, FHA will expand its FHASecure refinancing product to more homeowners past due on their mortgages using a fair, flexible premium structure. By charging borrowers mortgage insurance premiums based on their credit risk, FHA will be able to help more Minnesota homeowners with adjustable rate subprime mortgages stay in their homes and ensure taxpayers do not assume the cost of the expansion. FHA expects to insure 500,000 refinanced mortgages nationwide by the end of 2008.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.