HUD REACHES SETTLEMENT WITH FLORIDA ONLINE ADVERTISER REGARDING DISCRIMINATORY ADS

HUD No. 11-107
Shantae Goodloe
(202) 708-0685FOR RELEASE
Tuesday
May 31, 2011

HUD REACHES SETTLEMENT WITH FLORIDA ONLINE ADVERTISER REGARDING DISCRIMINATORY ADS
USA4SALE Network Inc. agrees to pay $15,000 to settle claim ads
discriminated against families with children

WASHINGTON – The U.S. Department of Housing and Urban Development today announced that USA4SALE Network, Inc., has agreed to pay $15,000 to settle claims that it violated the Fair Housing Act when it posted ads on its Web sites that discriminated against families with children.  In addition, the company has also agreed to change the way its Web sites filter discriminatory language.  

The settlement is the result of a complaint HUD initiated against the Ocala, Florida-based company after it allegedly printed a rental advertisement on its webpage, ocals4sale.com, that stated “No children, No kids.”  The Fair Housing Act prohibits housing discrimination based on family status, including publishing print, broadcast or Internet advertisements that indicate a preference or otherwise discriminate against families with children.

“The Internet has revolutionized the way people search for housing and how housing providers advertise available housing. It cannot be a place to avoid the Fair Housing Act," said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. "This voluntary agreement will help housing providers easily meet their responsibilities under the Fair Housing Act."

According to the voluntary agreement, USA4SALE Network will develop a screening filter that will flag potentially discriminatory ads for human review and train its employees on how to comply with fair housing advertising guidelines. The agreement also calls for the network to donate $7,500 to a HUD-funded state fair housing organization and contribute another $7,500 to a HUD-approved local fair housing group to cover the cost of the group’s future fair housing advertisements.

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

HUD ACTS AGAINST PREGNANCY DISCRIMINATION IN HOME MORTGAGES

HUD No. 11-108
Shantae Goodloe
(202) 708-0685FOR RELEASE
Wednesday
June 01, 2011

HUD ACTS AGAINST PREGNANCY DISCRIMINATION IN HOME MORTGAGES
Actions involve settlement with compensation for victims, and enforcement action

WASHINGTON – The U.S. Department of Housing and Urban Development today announced a settlement agreement with Cornerstone Mortgage Company (Cornerstone), a national mortgage lender based in Houston, which HUD accused of engaging in discriminatory lending practices against expectant mothers.  In a separate action, HUD is charging Mortgage Guaranty Insurance Corporation (MGIC) of Milwaukee, Wisconsin and others with engaging in pregnancy discrimination in issuing mortgage insurance in violation of the Fair Housing Act.

During a news conference, John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity, announced the settlement with Cornerstone and laid out the Department’s charge against MGIC.  The Fair Housing Act prohibits housing discrimination in sales, rental, and lending based on a person’s sex or familial status.

 "Pregnancy is not a basis to deny or delay a loan.  It’s just that simple,” said Trasviña.  “Mortgage professionals may verify income and other resources and have eligibility standards but they may not single out women on maternity leave to deny or delay loans that they are otherwise eligible for.”

Under the terms of the agreement announced today, Cornerstone (doing business as Cornerstone Home Lending) agrees to: 

Compensate Dr. Elizabeth Budde $15,000 based on her claims that she was initially denied a mortgage loan even though she was on paid maternity leave and planned to return to work;Create a $750,000 victims’ fund to compensate other Cornerstone borrowers who experienced discrimination because they were on pregnancy or maternity leave at the time they were applying for a loan; Notify all borrowers who applied during a two-year time frame of their right to seek compensation if they experienced treatment that was discriminatory because a borrower or co-borrower was pregnant or on maternity leave; andPay as many as 100 successful claimants a lump sum payment of $7,500 each. 

If there are more than 100 successful claimants, each will receive a prorated share of the compensation fund which will be administered by an independent third party administrator agency.  Cornerstone has also adopted a new policy clarifying how it will treat applicants for loans who are on parental leave, including maternity leave, when they apply for a loan.  (The policy would also apply to men who are on parental leave due to the birth or adoption of a child.)  Read HUD’s settlement agreement with Cornerstone.

Meanwhile, HUD is charging MGIC with discriminating against a Pennsylvania family by denying their application for mortgage insurance unless and until the wife returned to work from maternity leave.  According to HUD’s complaint, on or about July 26, 2010, MGIC wrote an email summarizing the status of the family’s loan:  “rec’d updated bank statements along with email from Borrower that states she is on maternity leave....notifying her that we cannot proceed until borrower is back to work full-time.”

Last July, HUD launched multiple investigations into the lending practices of certain mortgage lenders to determine if they illegally denied families mortgages because the mother is pregnant or on  pregnancy-related leave.    HUD enforces the Fair Housing Act which prohibits discrimination in lending based on sex or familial status (pregnancy or children in the family).   The Act protects consumers from being discriminated against because a borrower is on maternity leave if she can demonstrate that she intends to return to work and can otherwise continue to meet the income requirements to qualify for the loan.   

HUD’s Federal Housing Administration (FHA) requires its approved lenders to review a borrower’s income to determine whether they can reasonably be expected to continue paying their mortgage. FHA-insured lenders cannot, however, inquire about future maternity leave.  If a borrower is on maternity or short-term disability leave at the time of closing, lenders must document the borrower’s intent to return to work, that the borrower has the right to return to work, and that the borrower qualifies for the loan taking into account any reduction of income due to their leave.   Meanwhile, HUD is currently reviewing Fannie Mae and Freddie Mac’s underwriting guidelines to determine if they satisfy the Fair Housing Act, including income verification for persons taking maternity or parental leave.  

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

FHA AND FANNIE MAE ANNOUNCE GREEN REFINANCE PLUS TO PAY FOR ENERGY-EFFICIENT UPGRADES IN AFFORDABLE APARTMENT BUILDINGS

HUD No. 11-106
Brian Sullivan
(202) 708-0685FOR RELEASE
Tuesday
May 31, 2011

FHA AND FANNIE MAE ANNOUNCE GREEN REFINANCE PLUS TO PAY FOR ENERGY-EFFICIENT UPGRADES IN AFFORDABLE APARTMENT BUILDINGS
Energy Improvement Finance Program for Older Affordable Housing Developments

WASHINGTON – U.S. Housing and Urban Development Secretary Shaun Donovan today announced Green Refinance Plus, a program between HUD’s Federal Housing Administration (FHA) and Fannie Mae to allow owners of existing affordable rental housing properties to refinance into new mortgages that include funding for energy- and water-saving upgrades, along with other needed property renovations.

Under the program, FHA and Fannie Mae will share the risk on loans to refinance existing rent-restricted projects while permitting owners to borrow additional funds to make energy-saving improvements to their properties.

Donovan and Fannie Mae’s Executive Vice President for Multifamily Business Ken Bacon unveiled the program at a senior housing development in the San Francisco Bay Area where HUD is investing in energy-saving green retrofits.

 “All across the country, owners of affordable housing properties are looking for a way to refinance their mortgages and to make energy improvements and other needed renovations at the same time,” said Donovan.  “This program kills two birds with one stone – it preserves our affordable rental stock and it helps finance upgrades that will save energy and money over the long haul. We must make the smart investments in a more energy independent economy.  These investments will strengthen our economy, create the new industries and new jobs of the future and reduce our dependence on an ever fluctuating oil market. ” 

Bacon added, “Green Refinance Plus supports Fannie Mae’s ongoing commitment to creating a more sustainable rental housing market that is affordable to low- and moderate-income families.  This program will provide more renters with renovated apartments in which to live, allow building owners to better manage their energy costs, and help communities by reducing the environmental footprint of our rental properties.  Leveraging existing technology and expertise to bring proven energy and cost savings to rental housing is a win for everyone.”

California Congressman Pete Stark said, “Today's event highlights an exciting new refinancing opportunity for owners of affordable housing to make energy- and water-saving upgrades.  It’s appropriate that the Green Refinance Plus program is being unveiled by Secretary Donovan at the Eden Issei Terrace in Hayward, in the heart of a community poised to help propel our country’s clean, green energy economy.” 

Approximately every 10-to-15 years, owners of existing multifamily affordable properties typically refinance their mortgages.  In older apartment buildings, however, owners are hard-pressed to find additional financing to maintain or improve the physical condition of their properties, including making energy-efficient upgrades.   Beginning next month, Fannie Mae and its participating lenders will begin accepting applications to refinance owners’ debt as well as improve the energy efficiency of their properties.

Green Refinance Plus is intended to refinance the expiring mortgages of Low Income Housing Tax Credit and other affordable projects and to lower annual operating costs by reducing energy consumption.  Fannie Mae and HUD anticipate approximately $100 million in initial refinance volume with an average loan amount of $3.5 to $5 million. FHA will insure up to an additional four-to-five percent of the loan amount, or an average of approximately $150,000 to $250,000 per loan, to provide additional loan funds to pay for i) property improvements that save energy and water costs for owners and tenants, such as energy efficient windows and ENERGY STAR appliances, as well as ii) other needed property renovations.

Property owners will be able to select the energy- efficiency upgrades that make the most economic sense for their properties.  Borrowers will obtain a "Green Physical Needs Assessment" completed by a qualified provider.  This assessment identifies property improvements that both reduce energy and operating costs and will help borrowers make rehabilitation choices that will give them the greatest energy savings for their investment.

Green Refinance Plusis an enhancement of the Fannie Mae/FHA Risk-Share program, begun in the 1990s. It will provide funding for the refinance, preservation and energy-efficient retrofits of older affordable multifamily housing properties, including those that are currently in Fannie Mae’s or FHA’s portfolios. This program allows for lower debt service coverage and higher loan-to-value ratios, to generate extra loan proceeds for property rehab and energy-efficient retrofits.

Read more about FHA/Fannie Mae’s Green Refinance Plus Program.

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

HUD PROVIDES $15 MILLION IN RENTAL ASSISTANCE TO HELP NEARLY 2,000 FAMILIES STAY TOGETHER

HUD No. 11-109
Donna White
(202) 708-0685FOR RELEASE
Thursday
June 02, 2011

HUD PROVIDES $15 MILLION IN RENTAL ASSISTANCE
TO HELP NEARLY 2,000 FAMILIES STAY TOGETHER
Grants will keep children out of foster care, young adults from homelessness

WASHINGTON – In 2009, an estimated 423,773 children lived in foster care in the U.S. as case workers helped to reunite them with their families or primary caregivers. Today, the U.S. Department of Housing and Urban Development (HUD) announced nearly $15 million to help public housing authorities reunite foster children with their parents or prevent them from ever entering the foster care system.  Read a detailed account of the local funding announced today.

HUD’s Family Unification Program (FUP) will make 1,931Housing Choice Vouchers available for families whose inadequate housing is the primary factor in the separation or near separation from their children.  In addition, FUP vouchers will provide stable housing for young adults (ages 18-21) who left or are aging out of the foster care system, preventing them from becoming homeless.

“It’s heartbreaking to realize that thousands of children live in foster care or forced to live with other families simply because their parents can’t afford a home,” said HUD Secretary Shaun Donovan. “The funding provided today will keep thousands of families together under one roof.”

This funding allows local public housing authorities to work closely with local child welfare agencies to identify families with children in foster care or who are at risk of being placed in foster care and youth at risk of homelessness. These vouchers, like HUD’s Housing Choice Vouchers, allow families and youths to rent housing from private landlords and generally pay 30 percent of their monthly income towards rent and utilities.

According to the National Center for Housing and Child Welfare, it costs the federal government approximately $56,892 annually per family to place children into foster care.  Yet the cost to provide housing and supportive services to one family averages less than $14,000 annually. Through this investment in FUP to reunify families who are separated due to housing problems, HUD will reunite nearly 3,500 children with their parents, thus saving $74 million in annual foster care expenditures.  Cost savings are also considerable for young people aging out of foster care.  The average annual cost of a FUP voucher for young adults is $5,600 – a tenth of the estimated costs associated with undesirable outcomes such as homelessness, incarceration, and residential treatment.

“With this investment of FUP vouchers, Secretary Donovan continues to demonstrate his understanding of the critical role stable housing plays in keeping families together and safe,” said Ruth White, Executive Director of the National Center for Housing and Child Welfare. “We applaud HUD for leading the way to kind of interagency resource sharing that will reunify thousands of children with their families, prevent homelessness among youth aging out of foster care, and ultimately reduce costs.”

FY2010 Family Unification Program funding will be distributed to the following states: 

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

HUD APPROVES $14 MILLION FINANCING PLAN TO REPLACE CRITICAL ACCESS HOSPITAL IN COLUMBUS, MONTANA

HUD No. 11-110
Lemar Wooley
(202) 708-0685FOR RELEASE
Thursday
June 02, 2011

HUD APPROVES $14 MILLION FINANCING PLAN TO REPLACE
CRITICAL ACCESS HOSPITAL IN COLUMBUS, MONTANA

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to insure a mortgage loan to the Stillwater Hospital Association in Columbus, Montana.  The $14.3 million loan is made possible through the Federal Housing Administration’s (FHA) Section 242 Hospital Mortgage Insurance Program.

The existing hospital was constructed more than 50 years ago.  Space limitations and infrastructure problems in the aging structure necessitate replacement to better serve the community.  The FHA-insured mortgage loan will be used to construct an entirely new facility with a new emergency room, inpatient and outpatient surgery areas, laboratory, imaging department, a primary care clinic, and a home health agency. Stillwater Hospital Association is managed by Billings Clinic, Billings, Montana, a tertiary-level hospital that owns and manages six other hospitals and physician clinics in South Central Montana and Wyoming.

“By supporting hospital projects like this one in Montana, FHA is not only helping to expand access to medical care, itis also contributing to the financial well-being of communities by creating jobs to stimulate local economies.” said Acting FHA Commissioner Robert Ryan. 

“Critical access hospitals like this one in Columbus are just that – critical – and it’s essential they have the space and facilities to serve the critical needs of Montana patients.  This loan to the Stillwater Hospital Association is a smart investment that will support a healthy community and economy for years to come by supporting life-saving care and good-paying Montana jobs during construction and beyond,” said Montana’s senior U.S. Senator Max Baucus.

By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated$4.2 million in interest expense over the life of the loan.  Since 1968, FHA has insured 397 mortgage loans totaling $17.1 billion to hospitals in 43 states and Puerto Rico.

FHA’s Section 242 Mortgage Insurance Program for Hospitals enables hospitals to obtain capital to finance new construction and renovation of acute care hospitals.  Eligible applicants can be public, proprietary, or nonprofit hospitals certified by the responsible State agency.

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Refinance Home Mortgage Loan

Refinance home mortgage loan has always been popular among homeowners in periods of low interest rates. Home loan refinancing allows homeowners to replace the existing high interest rate home loan with a low mortgage refinance rate which would reduce monthly mortgage payments and/or shorten mortgage period considerably.

Refinance mortgage could provide low interest rate and flexible repayment options. If previous loan has been paid timely, homeowner's credit score would improve. This will help to get better refinance mortgage terms. Since new loan offers better rate, mortgage could be paid off faster.

A person with good credit score can easily take advantage of mortgage refinance loan. Those who have bad credit can also get a mortgage refinance. However they will have to pay slightly higher interest rate. Probably the best advice for people with bad credit would be to see if they could improve their credit score first.

Recently, more mortgage refinancing applications have been turned in for approval than ever before. This is due to a struggling economy, low home interest rates, and new stimulus programs that make approval of mortgage refinancing easier. In addition, the lenders and banks do not want to deal with more home foreclosures or defaults. Many new refinancing mortgage options now exist for nearly any homeowner. Eased requirements and restrictions allow more people than ever to get refinance approval.