NMP - February 2018 - 20

✒

New FHA and VA Loan
Limits for 2018
By Gavin T. Ales

T

FEBRUARY 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

20

he Federal Housing Administration (FHA) and the
U.S. Department of Veterans Affairs (VA)
announced their maximum loan limits for 2018.

The FHA reported that maximum loan limits for FHA
forward mortgages will rise in 3,011 counties next year. For
these forward mortgage limits calculated by Metropolitan
Statistical Area (MSA) and county, the FHA will increase the
loan limit "floor" from $275,665 (FY 2017) to $294,515 (FY
2018). This increase in FHA's "floor" and "ceiling" loan limits
applies to a one-unit property as referenced in Section
II.A.2.a.ii of the HUD's Single Family Housing Policy
Handbook 4000.1. The loan limit "ceiling" will also increase in
high-cost areas from $636,150 (FY 2017) to $679,650 (FY
2018). The FHA explained that increases in the FHA's "floor"
and "ceiling" loan limits for calendar year 2018 resulted from
a significant increase in median housing prices that increased
the Federal Housing Finance Agency (FHFA) limits.
The FHA maximum loan limits are applicable to FHA Title II
Forward Mortgages insurance programs under the National
Housing Act, and are effective for case numbers assigned on
or after Jan. 1, 2018, and remain in effect through Dec. 31,
2018. For more detailed information about the FHA forward
mortgage limits for 2018, please refer to Mortgagee Letter
2017-16.
The VA posted on its Web site that its 2018 County Loan
Limits will be the same as the limits set by the Federal
Housing Finance Agency (FHFA). These County Loan Limits
take effect on Jan. 1, 2018. Please note that lenders are
instructed to only refer to the One-Unit Limit column in the
FHFA Table "Fannie Mae and Freddie Mac Maximum Loan
Limits for Mortgages Acquired in Calendar Year 2018 and
Originated after 10/01/11 or before 07/01/07" to determine
the VA guaranty.
The VA does not impose a cap on the amount that a
veteran may borrow to purchase a home, but the law directs
the maximum amount guaranteed by the VA on a home loan.
The amount of liability the VA can assume usually affects the
loan amount that an institution will lend. The loan limits
represent the amount a qualified veteran with full entitlement
may be able to borrow with no money down. Eligible veterans
have a basic entitlement of $36,000. Without a downpayment,
lenders typically loan up to four times a veteran's available
entitlement. Lenders may make loans greater than the
effective loan limit, but usually require a downpayment equal
to 25 percent of the difference between the loan amount and
the County Loan Limit.

Gavin T. Ales is chief compliance officer with
Torrance, Calif.-based DocMagic Inc. He may be
reached by phone at (800) 649-1362, ext. 6446 or
e-mail Gavin@DocMagic.com.

SPONSORED EDITORIAL

nmp news flash

continued from page 16

Network pillars are to 'feed' and
'serve,'" said Dave Zitting,
President and Chief Executive
Officer of PRMI. "Because we're
based in Salt Lake City, we want to
show our support to these teens
on their path of self-sufficiency. We
are so grateful to the Youth
Resource Center for the
opportunity to make a difference
and show our support."
Survey: Why Borrowers
are Late With Mortgage
Payments

When it comes to paying a
mortgage, more than half of
consumers blame their late
payments on a lack of funds,
according to a survey conducted by
ACI Worldwide and MasterCard
Advisors.
In a poll of 400 consumers, 57
percent of respondents admitted
that they did not have the money to
cover their bills, while 34 percent
blamed bad billing and payment
experiences for their late
reimbursements, 23 percent
admitted that they forgot to pay, 17
percent prioritized other bills over
their mortgage payments and 11
percent found the payment process
complicated.
Millennials were particularly
cranky when it came to mortgage
payments. Over half of the
Millennials surveyed said they are
dissatisfied with current payment
methods like ACH, online banking
and check, while more than 30
percent said they contacted their
mortgage servicer for questions and
complaints regarding the payment
process
But that is not to say that
borrowers do not take their
payments seriously. Beyond interest
rates, 57 percent of respondents
said they choose their mortgage
lender based on how they accept
payments. Steve Kramer, vice
president at ACI Worldwide, noted
that four of the top 20 mortgage
servicers accept card payments for
mortgage invoices.
"When it comes to mortgage
payments, we've gone beyond early
adopters to the early majority stage,
which is further reinforced by this
new data," said Kramer. "Card
payments will-and continue to-
enhance ease and convenience for
mortgage customers."

HMDA Exemption Bill Passes
the House

The House of Representatives voted
243 to 184 to pass the Home
Mortgage Disclosure Adjustment Act
(HR 2954), which is designed to
eliminate compliance regulations
imposed on small financial
institutions by the Consumer
Financial Protection Bureau (CFPB).
HR 2954 will exempt from the
CFPB's reporting and disclosure
requirements institutions that have
originated fewer than 500 closedend mortgage loans and fewer than
500 open-end lines of credit in each
of the two preceding calendar
years. A companion bill was
introduced in the Senate by Idaho
Republican Mike Rounds, but it has
yet to pass the Senate Banking
Committee.
"Since the inception of DoddFrank, our local small banks and
credit unions have been forced to,
quite literally, pay the price for a
crisis they didn't create," said Rep.
Tom Emmer (R-MN), who first
introduced the Home Mortgage
Disclosure Adjustment Act in 2015. "I
consistently hear from Minnesota's
small community banks and credit
unions who are struggling to keep up
with burdensome compliance costs.
Some have significantly reduced the
amount of mortgages or loans they
originate, or even stopped offering
mortgages altogether. Americans
want the opportunity to achieve the
American dream: to own a home,
buy a car, or start a business. I am
proud the House passed the Home
Mortgage Disclosure Adjustment Act
to provide relief for these institutions
to help make that happen."
Your turn
National Mortgage Professional
Magazine invites you to submit any
information on regulatory changes,
legislative updates, human interest
stories or any other newsworthy
items pertaining to the mortgage
industry to the attention of:
NMP News Flash column
Phone #: (516) 409-5555
E-mail:
Newsroom@MortgageNewsNetwork.com

Note: Submissions sent via e-mail
are preferred. The deadline for
submissions is the 1st of the month
prior to the target issue.


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