ECL Software Blog

Lower FHA Mortgage Insurance Rates Could Entice New Buyers

Make sure you are ready with seamless 203K software for lenders

First time homebuyers are slowly making their way back into the housing market. Many experts hope that 2015 will be the year they return in full force. This prediction is based on a variety of factors, including the lowest mortgage rates since May 2013 and lower FHA mortgage insurance premium rates.

As of January 8, 2015, the FHA mortgage insurance premium rates have been lowered half a percent, from 1.35 percent to 0.85 percent. This change is expected to provide welcome relief to first time home buyers by helping to reduce their mortgage payments. For example, on a $200,000 loan a buyer could save $83 per month on their mortgage payment thanks to the rate reduction.

Will Your Organization Be Ready?

This is the first time FHA mortgage insurance rates have been reduced since 2001. Hopefully it has not been that long since you updated your lending software!

In any case, it is important to have the technological capacity to administer new FHA loans efficiently and accurately if your organization hopes to take full advantage of the expected trend towards increased first-time home buying. ECL’s seamless 203K software for lenders can help.

Our fund control software gathers all the functions needed to award and administer all kinds of loans—including FHA 203K loans—into one convenient portal. Using this seamless 203K software for lenders you can:

• Evaluate: Our detailed contacts portal makes it easy to track potential borrowers and collect information confirming that they qualify for FHA 203K lending.
• Communicate: Our seamless 203K software for lenders comes preprogrammed with all the document templates needed to communicate vital information about the project. You can customize these templates or create your own.
• Track: Enjoy at-a-glance oversight of all vital aspects of individual loans and loan portfolios, including inspection reports with photos for FHA rehab loans.
• Move Money: Since our online software links with your back end accounting system, it’s easy to administer the loan accounts. You can record disbursements and pay-downs in the same system where they’re received to help improve the accuracy of accounting processes.
• Test: A wide variety of stress testing functionalities are built right into our seamless 203K software for lenders, making it easy to stay abreast of the potential ramifications of market trends on individual loans and portfolios.
• Customize: Our lending suite comes with hundreds of settings that can be turned on or off to suit the way you do business, and we can customize the software even further with additional programming changes if needed.