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Email not displaying correctly? View it in your browser. FHA Lays Out Plan to Replenish Depleted Funds The Federal Housing Administration (FHA) wants lenders and mortgage companies to shoulder more liability for the loans the agency insures against default. It also wants to raise the criteria for homebuyers looking to take out an insured mortgage. The proposed policy changes come as FHA officials grapple with the disappointing results of an annual financial audit. HUD Secretary Shaun Donovan is asking lawmakers to allow FHA to institute new rules that would ensure FHA lenders and servicers, as well as borrowers have more "skin in the game." Short Sale Reforms Receive Mixed Reviews The Treasury announced new guidelines to the short sale process this week in hopes of speeding up the recovery of the housing market. The plan aims to streamline the short sale process and offers financial compensation to servicers, investors, subordinate lien holders, and homeowners for choosing this alternative to foreclosure. Industry players have begun weighing in on the new short sale guidelines. Many feel it's a step in the right direction in the fight against foreclosure, but some suspect second lien holders could be a weak link in the program's success. Bank of America to Repay Entire $45B Bailout In a surprise announcement Wednesday, Bank of America said it is settling up with U.S. taxpayers. The North Carolina-based bank has received approval from regulators to pay back the full $45 billion it received from the Troubled Asset Relief Program (TARP). Repayment of the funds would help BofA cast off the public stigma associated with it being one of two lenders to receive the most federal aid and remove federal pay restrictions on its executives' compensation. Long-Term Mortgage Rates Set Another Record Low: Freddie Mac Interest rates for 30-year and 15-year fixed-rate mortgages have fallen for five consecutive weeks, and this week both set a new all-time record low, Freddie Mac reported Thursday. It's been a good year for borrowers when it comes to the costs associated with purchasing or refinancing a home. Freddie Mac's chief economist, Frank Nothaft, says interest rates on long-term mortgages through all of 2009 have averaged a full percentage point below their 2008 averages. You are receving this email because you opted in at our website dsnews.com or attended a Five Star Conference. Unsubscribe roballey.434-974-5586@blogger.com from this list. Corporate Office: DS News 1909 Woodall Rodgers Suite 300 Dallas, TX 75201 Add us to your address book Washington Bureau: 1101 Pennsylvania Avenue NW Suite 600 Washington, D.C. 20004 Copyright (C) 2009 DS News All rights reserved. Forward this email to a friend Update your profile QUICK LINKS DSNews.com DS News' Red Book DS News' Black Book 2009 Five Star Conference DARE