No sooner had the reduced MI gone into effect with FHA streamline refinances, some banks announced that they would only provide FHA streamline refinances on mortgages they currently service. I can understand a bank doing this on the “non-credit qualifying” refinances where borrowers do not document their income or assets, however I have a hard time accepting this when a borrower is doing a full “credit qualifying” FHA streamlined refinance.
By limiting availability of a program to home owners who are ABLE AND WANT to continue to make their mortgage payments and take advantage of the historically low mortgage rates, these banks are hampering the recovery of our housing markets.
Wells Fargo, with a significant market-share of FHA insured loans, was the first bank to come out with this announcement. If you have an FHA mortgage with Wells Fargo, I can help still you with your refinance if your home is located in Washington. I just have to keep your new FHA loan with Wells Fargo. Other banks have followed suit with a few giving us deadlines of up to this Friday, June 22, 2012 for accepting FHA streamline loans they do not service.
UPDATE: Received a notice of one bank adding a price hit for FHA streamlined refinances… somehow I don’t think HUD invisioned banks cherry picking and charging more for this program when HUD reduced the mortgage insurance premiums.
I continue to get announcements from the various banks and lenders we work with. Thankfully not all banks are following Wells Fargo’s suit.
BOTTOM LINE: if you have an FHA mortgage and are interested in an FHA streamlined refinance, please don’t delay! Banks are making them less available.
If your home is located anywhere in Washington state, I can help you with your FHA insured loan. We are *currently* working with lenders who will accept FHA loans currently being serviced from other banks. Click here to apply.