Posted on: 08th Apr, 2004 04:26 am
The FHA or the Federal Housing Administration approves a certain kind of mortgage program in which the FHA and original lender shares the risk of loss in case of any default by the borrower. This kind of a program is referred to as the FHA co-insured mortgage program.
Under this program, the FHA assigns the lenders certain underwriting functions that are generally performed by the organization. So it cannot be assured that the lenders will be following the underwriting guidelines of the FHA as is the case with other FHA approved mortgages. So the default risk in case of FHA co-insured mortgages may not be equivalent to that of other mortgages insured by the FHA. Therefore, the likelihood of future default or the rate of prepayment on coinsured mortgages may not be comparable to that of other mortgage products insured by the FHA.
Under this program, the FHA assigns the lenders certain underwriting functions that are generally performed by the organization. So it cannot be assured that the lenders will be following the underwriting guidelines of the FHA as is the case with other FHA approved mortgages. So the default risk in case of FHA co-insured mortgages may not be equivalent to that of other mortgages insured by the FHA. Therefore, the likelihood of future default or the rate of prepayment on coinsured mortgages may not be comparable to that of other mortgage products insured by the FHA.
I got an FHA loan and it was never insured through hud . whos fault is this , mine ? is there anything I can do ? Thank you for your time , peg
Hi
"I got an FHA loan and it was never insured through hud"
If your loan was an FHA loan, it has to be insured by FHA. If it is an FHA co-insured mortgage, the loan is jointly insured by the FHA and the lender. Can you explain the situation? How did you come to know that the loan isn't FHA-insured?
"I got an FHA loan and it was never insured through hud"
If your loan was an FHA loan, it has to be insured by FHA. If it is an FHA co-insured mortgage, the loan is jointly insured by the FHA and the lender. Can you explain the situation? How did you come to know that the loan isn't FHA-insured?
Hi , Thaank you for writing back to me
I called hud once awhile back and they told me the loan was never insured . On our closing paper work its a fha loan but our mortgage company has on our loan that its conventional . They changed it .
I called hud once awhile back and they told me the loan was never insured . On our closing paper work its a fha loan but our mortgage company has on our loan that its conventional . They changed it .