73rd Anniversary of FHA

27 June 2007
HUD Press Release
Washington

The U.S. Department of Housing and Urban Development (HUD) celebrated the 73rd anniversary of its Federal Housing Administration (FHA) today at HUD Headquarters.

HUD Deputy Secretary Roy Bernardi joined Assistant Secretary for Housing-FHA Commissioner Brian Montgomery to discuss FHA Modernization, the importance of providing housing counseling programs to prospective homebuyers, and the need for Congress to pass legislation to let FHA make the American Dream a reality for more families. "FHA has given millions of families the opportunity to pursue the dream of homeownership," said Deputy Secretary Bernardi.

"Our goal is to continue our education and outreach efforts while also retooling and refining FHA to insure safer mortgages that will keep the dream alive for the next generation of homebuyers. "This is an historic occasion," said FHA Commissioner Brian D. Montgomery. "In the 73 years since its creation, FHA has been able to help over 34 million families achieve the dream of homeownership. It is fitting that FHA's birthday takes place in the month we set aside every year to promote homeownership in this country."

Since its inception in 1934, FHA has helped more than 34 million people become homeowners, making it the largest insurer of mortgages in the world. The 109th Congress introduced the Expanding American Homeownership Act in June 2006.

This legislation would enable FHA to be an option for more underserved low- and moderate-income families so they can achieve the American Dream of homeownership. Once enacted, the reform legislation would create a new risk-based insurance premium structure, eliminate the current three percent minimum downpayment, and increase FHA's loan limits. "FHA, despite all its success, does need to adapt to today's marketplace," said Montgomery. "We strongly support legislation that would modernize FHA and enable it to offer many Americans a variety of homeownership options that are safe and fairly priced."

Vendors and numerous representatives from the housing industry participated in the event. Games, music, and food were available for visitors, as well as opportunities to tour the Healthy Homes pavilion. "Although June is National Homeownership Month, people can learn about the homebuying process throughout the year by contacting a HUD approved housing counseling agency," explained Bernardi. There are 2,300 HUD-approved housing counseling programs around the country that help potential and current homeowners learn about safe loans products available through the FHA's mortgage insurance programs and other responsible lenders.

FHA's mortgage loans have helped nearly 50,000 people stay in their home and avoid foreclosure this year.

Diverse Views of Housing Market Provided by Wells Fargo Symposium

Industry Leader to Emphasize Fair and Responsible Lending and Servicing Principles

Washington, D.C.
14 June 2007

Wells Fargo & Company is a diversified financial services company with $486 billion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 6,000 stores and the internet (wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of only two banks worldwide, to have the highest credit rating from both Moody's Investors Service, "Aaa," and Standard & Poor's Ratings Services, "AAA."

Everyone deserves a fair shot at the American dream of homeownership. How to safeguard that dream is the subject of today's housing symposium, sponsored by Wells Fargo to help commemorate National Homeownership Month.

The symposium will feature diverse voices from across the homeownership spectrum, including economists, consumer advocates, and leaders of the financial services and housing industries. "Wells Fargo's vision is to help satisfy all of our customers' financial needs and help them succeed financially. We are driven by this vision which includes helping as many people as possible achieve and maintain the dream of being a homeowner," says Cara Heiden, division president, Wells Fargo Home Mortgage.

"We believe it is our responsibility to collaborate with industry partners on leading fair and responsible lending and servicing, advancing customer education, and continuing to develop solutions for consumers who face financial difficulties. Our symposium will provide a forum in which to explore the impact of the current economy and the responsibilities of all industry partners in affecting change." Wells Fargo has long adhered to fair and responsible lending and servicing principles.

The company's Responsible Lending Principles for Non-Prime U.S. Real Estate Lending have been posted on its Web site since January, 2004. At the symposium, the company's Responsible Servicing Principles will be distributed publicly for the first time. "We've long advocated the adoption of fair and responsible lending and servicing principles across the mortgage industry," Heiden stated. "By publicizing our practices, we hope to inspire others in the industry to do the same." The Responsible Servicing Principles are:

We approach every interaction from the customer's point of view-putting his or her needs first.

We provide clear, simple and timely information to consumers, understanding how complex homeownership and financing can be.

We believe our customers deserve a dedicated and knowledgeable service team; we strive to hire and retain the best.

We provide tools, services and information that help our customers manage their credit.

We believe in homeownership, and do all we can to help keep people in their homes.

The symposium speakers include Secretary of Housing and Urban Development Alphonso Jackson; Washington Post Writers Group Syndicated Columnist Ken Harney, and Managing Director of UBS Securities Hugh Corcoran.

Panelists will include key representatives from: Fannie Mae, ISI Group, National Community Reinvestment Coalition, Consumer Federation of America, National Association of Home Builders, National Association of REALTORS®, Mortgage Bankers Association, National Association of Mortgage Brokers, National Association of Hispanic Real Estate Professionals, National Association of Real Estate Brokers, and Asian Real Estate Association of America. "Safeguarding the American Dream" is the second housing symposium that Wells Fargo has sponsored.

Last year's, "Breaking Down the Barriers to Homeownership" included the company's launch of Steps to Success^SM a program designed to help our customers with nonprime real estate loans better manage their credit and achieve financial success. (The event, held at the Ronald Reagan Building, 1300 Pennsylvania Ave, NW, is open to credentialed media. Reservations for the general public may be made by calling 800-875-0190 starting at 8 a.m. (ET).

California Consumer Groups Urge Lenders to Stop Foreclosures

California Reinvestment Coalition
Press Release
2007 May 14


CEOs of Top Six Banks Asked to Protect the Economy, Working Families


One hundred fifteen community and consumer organizations led by the California Reinvestment Coalition (CRC) today called upon six leading mortgage lenders to stem the statewide tide of home foreclosures resulting from predatory loans.


The lenders are being asked to declare a temporary moratorium and direct homeowners to financial solutions that will allow them to keep their homes. “California is in the midst of a foreclosure crisis that could rob hundreds of thousands of homeowners of the American dream,” said Kevin Stein, associate director of CRC.


“Many California homeowners are facing foreclosure because they were misled by unscrupulous mortgage brokers and lenders. We are asking the largest lenders in the state to take leadership so that families can keep their homes and California’s economy won’t suffer.” The San Francisco-based coalition, which advocates for equality in financial services for California consumers, sent letters to the Chief Executive Officers of Bank of America, Citibank, Countrywide Home Loans, Merrill Lynch, Washington Mutual and Wells Fargo.


The letters ask the CEOs to halt foreclosures for the next six months and meet with community-based organizations to design solutions to the growing foreclosure crisis.


The groups that joined CRC to write these letters have a common goal of providing affected homeowners access to financial advisors and services so they won’t join the thousands in California who have already lost their homes. California is experiencing record-breaking foreclosure numbers, with 31,434 foreclosures in March alone – nearly triple the number of foreclosures in March of last year, according to Realtytrac.


This surge in activity has pushed the state’s rate of foreclosures to nearly twice the national average, Realtytrac reported. The letter calling for a moratorium was signed by leaders from communities affected by the increase in foreclosures, and mortgage counselors who are deluged by thousands of borrowers seeking help with deceptive, and in some cases fraudulent loans made by brokers, lenders and Wall Street firms.


Although such problematic practices are more likely found in California’s neighborhoods of color, none of the state’s communities and borrowers is immune from bad lending practices, Stein said. Borrowers affected by fraudulent loans include the elderly, non-English speakers who only saw English documents for their loan, subprime loan borrowers and borrowers whose incomes were misstated by brokers. CRC warns that as housing prices decline, the foreclosure crisis will escalate.


In 2006, 21 of California’s 26 metropolitan areas suffered housing price declines, which limit the ability of many borrowers to refinance loans. The problem of declining home prices can only worsen as more homes go into foreclosure, fueling a cycle of falling home values and increasing foreclosures.