OCC Reports On FHA Home Rehab Financing Program

Posted by Orb Staff on August 07, 2009 No Comments
Categories : Residential Mortgage

fice of the Comptroller of the Currency (OCC) has [link=http://www.occ.gov/cdd/203k_Loan_Program_Insights_Jul09.pdf][u]published[/u][/link] a Community Developments Insights report that provides bankers an overview the Federal Housing Administration's (FHA) 203(k) Home Rehabilitation Mortgage Insurance Program. The 203(k) Program provides FHA mortgage insurance on loans that combine home purchase and rehabilitation financing. Loans to rehabilitate and refinance a borrower's current resident area are also available under the 203(k) Program. "The 203(k) Program is an important tool that can help mitigate a lender's risk while, at the same time, restore some of the nation's foreclosed properties and help stabilize neighborhoods," says Comptroller of the Currency John C. Dugan. The OCC's report provides a comprehensive overview of this program for lenders that may be considering expanding their product line with 203(k) loans. The report also outlines how FHA 203(k) loans would be evaluated under the Community Reinvestment Act. FHA Commissioner David Stevens has commended the OCC for its efforts to increase bank participation in the program. "With so many bank-owned properties in need of repairs, this program offers a great way for home buyers to finance both the purchase and rehabilitation of these homes," Stevens says. SOURCE: [link=http://www.occ.gov]OCC

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