Budget Request: Premium Increases for FHA
The proposed fiscal year 2013 budget for HUD indicates upcoming premium increases for FHA mortgage insurance. The temporary payroll tax holiday Congress extended late last year requires FHA to implement a 10 basis point increase in its annual premiums for all new FHA loans. According to the budget request, FHA will increase premiums on "jumbo" loans (those over $625,500) by 25 basis points, for a total of 35 basis points on those loans. FHA says it might implement additional premium increases to shore up its finances.
The budget also says FHA is reducing seller concessions from 6 percent to 3 percent, or $6,000, whichever is higher. A proposed rule is expected on this later in the month. The budget also says that for the current budget year, based on re-estimates of FHA revenue, the agency could require a subsidy from the federal government of $688 million. Although they now will not request that money (becasue they received more than $1 billion from the settlement with the banks over robo-signing), Congress will likely re-evaluate FHA because of the shortfall. More . For more info contact Megan Booth, mbooth@realtors.org 202/383/1222

Freddie Reiterates Policy on Deficiency Judgments
The secondary mortgage market company Freddie Mac has updated its bulletin to servicers to make clear lenders aren't to pursue a deficiency judgment against a borrower after a short sale or deed-in-lieu of foreclosure if the transaction was processed in accordance with Freddie Mac's guidelines.  Summary