Homeownership: BACK TO BASICS!
From the HUD Tampa Field Office

Serving 12 counties in West Central Florida-
Citrus / DeSoto / Hardee / Hernando / Highlands / Hillsborough / Manatee / Pasco / Polk / Pinellas / Sarasota / Sumter

Message from
Karen Jackson Sims, Field Office Director

Your Home: Buying It, Keeping It and Protecting It!

It is indeed my pleasure to welcome you to the Summer Issue of HUD Tampa's Newsletter! This issue combines important information about (1) homebuying, home maintenance and home retention, and (2) disaster preparedness as we enter the 2008 hurricane season in Florida.

HUD's 2008 Homeownership Theme, "Back to Basics" - is designed to underscore the importance of having strong, common-sense fundamentals as a way to maintain a sustainable housing market. Many of those basics (verification of income, ability to repay) were not given sufficient weight in the last few years, contributing to the current housing challenge. The Tampa Office will focus on helping families learn what the federal government is doing to help struggling homeowners; how to protect themselves against predatory lending; how to better understand what goes into owning a home; and how to own an affordable home. HUD's FHA Secure Program, upcoming workshops and housing counseling resources are all highlighted in this issue for you and your customers. Together, we can increase the health of housing!

On May 30th in St. Petersburg, Governor Crist joined emergency managers and major retailers as part of Hurricane Preparedness Week. The Governor announced a new partnership between the Florida Lottery, the Florida Retail Association and emergency managers to assist citizens to become better prepared for the 2008 hurricane season. Similarly, HUD Tampa has completed internal preparations for assisting our customers to prepare for, and recover from, both natural and other disasters. To assist you, the reader, in your own preparation, we have listed a range of internet sites for quick reference. Please take time to read this information so everyone will be prepared and know what to do after a disaster strikes. The Tampa Bay Area has gained invaluable direct lessons from past disasters and both HUD and our partners (government, non-profit organizations, code enforcement, housing authorities, multifamily developments and others) are ready to activate appropriate responses. Let's hope for a mild season, while at the same time prepare for the worst should the need arise. Take care and be safe!

Karen

STATEMENT BY THE PRESIDENT ON THE SENATE CONFIRMATION OF
STEVE PRESTON AS SECRETARY OF HUD

"I am pleased that the Senate unanimously confirmed Steve Preston to serve as Secretary of the Department of Housing and Urban Development. Steve is a strong leader whose understanding of our financial markets and strong management skills make him highly qualified to serve in this important position. He will aggressively work to ensure that the Department remains focused on its mission of making housing more affordable and helping Americans keep their homes. Steve is also a consensus builder who will build on our efforts to work with Congress on responsible legislation addressing our Nation's housing policies." - President Bush

YOU WORKED HARD FOR HOMEOWNERSHIP
Let FHASecure Make Your Work Payoff!

The Federal Housing Administration has helped millions of Americans secure their dream of homeownership since 1934. Now we want to keep those dreams alive. We provide mortgage insurance on loans made by FHA approved lenders throughout the United States and its territories. FHA insures mortgages on single family, multifamily, manufactured homes and healthcare facilities. It is the largest government backed mortgage insurer.

WHAT IS FHASecure?
FHASecure is a refinancing option that gives credit-worthy homeowners, who were making timely mortgage payments before their loans reset but are now in default, a second chance with a FHA insured loan product.

WHO IS ELIGIBLE?
To qualify for FHASecure, and include the delinquent loan payments, homeowners wishing to refinance must meet the following requirements:

1. Have a non-FHA insured ARM that has reset;
2. Sufficient income to make the mortgage payment; and
3. A history of on-time mortgage payments before the loan reset.

Homeowners who are current on their conventional mortgages must have sufficient income to make the mortgage payment. By refinancing into a FHA insured mortgage, you can expect to pay lower monthly mortgage payments. FHASecure can improve the quality of life for many communities by helping to reduce the number of mortgage defaults and bringing greater stability to local housing markets.

HOW TO APPLY

Search online for your nearest FHA approved lender, or for more information call 1 (800) CALL-FHA (1 (800) 225-5342).

FREQUENTLY ASKED QUESTIONS & ANSWERS
The following section will provide you with answers to questions most frequently asked about FHASecure -

How far behind can you be on a mortgage to qualify? What about more than 90 days?
There isn't a limit on how far behind you can be on your mortgage or how many payments you've missed. Whether you're current, one month behind or multiple payments behind, the amount you can refinance will depend on the value of your property and how much you owe and if the lender, or another eligible source, is willing to take back a second mortgage to help bridge the gap between what is owed and your home's value.

Must I be delinquent, and for a certain period of time, in order to be eligible for FHASecure?
No, and FHA encourages homeowners facing reset to refinance before they fall behind on their mortgage.

I have a fixed rate mortgage and have fallen on bad times. What about me?
Homeowners facing financial difficulties and unable to make their mortgage payments are strongly encouraged to contact their lender. Many lenders offer assistance to their borrowers to help them bring their mortgage current. Homeowners may also want to contact a HUD-approved housing counseling agency to find out about programs that may be able to assist them, especially if communication with the lender has broken down. To find a HUD-approved housing counseling agency, please call 1 (800) 569-4287 or search online.

I have an interest-only mortgage. Am I eligible for FHASecure?
So long as you are current on your mortgage, you are eligible for an FHASecure refinance. If you are delinquent, the default must have been due to the payment shock of an interest rate reset or, in the case of an Option ARM, the "recasting" of the mortgage to fully amortizing.

What if I have a prepayment penalty and other refinancing costs and there isn't enough equity in my home for me to refinance? -
If you do not have sufficient equity in your home to add your prepayment penalty and/or other refinancing costs into your new FHA mortgage, then you should ask your lender to consider a second mortgage to pay the difference or a short payoff on your existing loan. Offering either of these options is at the discretion of the lender.

What if the average home price is above the FHA loan limit for my area? Are the FHA loan limits changing for this program?
FHA's geographical loan limits and how much it can insure are established by law. Although the FHA insured mortgage cannot exceed those loan limits, when a lender is willing to combine a first and second mortgage, the amount of the second could exceed the maximum loan limit for your area.

Does it matter that the value of my home is now less than what I still owe?
Not to FHA but the mortgage lender considering the refinance would have to be willing to accept a short payoff on the existing loan OR to hold a second mortgage to make up the difference needed to pay off the existing mortgage and the home's value.

If I have first and second mortgages can both loans be included in FHASecure?
Yes, but only if the combined amount is within the FHA geographical loan limit. If the combined amount exceeds the FHA loan limit and/or the loan-to value limit, your lender could offer you a second mortgage to make up the difference.

How can FHA help homeowners stay in their homes?
FHASecure gives homeowners with non-FHA adjustable rate mortgages (ARMs), current or delinquent and regardless of reset status, the ability to refinance into a FHA insured mortgage. With FHASecure, the lender will not automatically disqualify you because you are delinquent on your loan, and the lender may offer you a second mortgage to make up the difference between the value of your property and what you owe, including standard refinancing costs.

Why should I consider refinancing into a FHA insured mortgage?
FHA insured mortgages do not allow for prepayment penalties, teaser rates or balloon payments. They are offered at market rate with terms up to 30 years and are fully amortized, meaning that you pay towards principal and interest every month.

If this program won't help everyone, why is FHA making it available?
FHA recognizes that foreclosures and vacant properties affect home values, contribute to neighborhood decline and cost local governments due to additional services and lost revenues. FHA is offering this program to help prevent that type of negative impact on a community.

What is this program going to cost taxpayers?
Because the borrower pays the FHA mortgage insurance premium, taxpayers do not pay for FHASecure or other FHA programs. FHA borrowers pay their own way, and potentially avoid foreclosures that contribute to neighborhood decline, property depreciation and decreased revenues to the locality.

Does this program help responsible people who pay their bills on time?
Any homeowner who is current on their mortgage can refinance to a FHA insured loan at any time if it makes financial sense for them to do so. And for those homeowners with non-FHA adjustable rate mortgages who are current but owe more than their home is worth, it is now possible for them to refinance into a more affordable FHA insured mortgage and the lender may execute a second mortgage at closing to pay the difference.

Why isn't FHA going after the lenders who approved these types of loans in the first place?
FHA was established to insure mortgages. It does not have the authority to regulate transactions that do not involve FHA financing

IT'S HURRICANE SEASON

THE INTERNET: A GOLDMINE OF DISASTER PREPARATION DATA

HUD Tampa invites you to visit the following internet sites as part of disaster preparation:

U.S. Department of Housing and Urban Development, Southeast Region Disaster Assistance-
www.hud.gov/local/shared/news/r4/disasterassist.cfm?state=fl

Federal Alliance for Safe Homes-
http://www.flash.org

State of Florida Division of Emergency Management-
http://floridadisaster.org/

U.S. Federal Emergency Management Agency-
http://www.fema.gov/plan/index.shtm

American Red Cross-
http://www.redcross.org/services/disaster/0,1082,0_319_,00.html

U.S. Small Business Administration-
http://www.sba.gov/

National Oceanic and Atmospheric Administration Storm Watch-
http://www.noaa.gov/stormwatch/

Partnership for Advancing Housing Technology-
http://www.pathnet.org/

Tampa Bay Fair Housing Consortium Hosts
"No Place Like Home"
Poster Contest

We would like to congratulate the Tampa Bay Fair Housing Consortium on hosting a very successful 2008 Fair Housing Poster contest! Although held in the past by its Hillsborough County member agency, this was the first year it was held by the entire Consortium.

The following organizations were responsible for a total of 22 entries: Barrington Academy; Dorothy Thomas Exceptional School; Dale Mabry Elementary School; and Mt. Zion AME Church.

K-1
1st - Ryan Gorman (Barrington)
2nd - Jamail B. (Dorothy Thomas)
3rd - Julius R. (Dorothy Thomas)

Grades 2-3
1st - Anthony F. (Dorothy Thomas)
2nd - Chris V. (Dorothy Thomas)
3rd - Eric D. (Dorothy Thomas)

Grades 4-5
1st - Chanise Thomas (Mt. Zion AME Church)
2nd - Joshua Felder (Dale Mabry Elementary School)
3rd - Latrise Thomas (Mt. Zion AME Church)

Each winner received a trophy and gift card, with first prize winners receiving savings bonds.

The Consortium's members include: Bay Area Apartment Association; Bay Area Legal Services, Inc.; City of Clearwater; City of Largo; City of St. Petersburg; City of Tampa; Gulf Coast Legal Services, Inc.; Hillsborough County EO Administrator; and the Pinellas County Office of Human Rights. Congratulations on a job well done!

June Designated National Homeownership Month

With HUD's "Back to Basics" Theme

"Back to Basics" is designed to underscore the importance of having strong, common sense fundamentals as a way to maintain a sustainable housing market. HUD's Federal Housing Administration is at the center of the Administration's efforts to help qualified homeowners refinance into safer, more affordable mortgage products. Over 200,000 families are already using FHA to keep their homes. In an effort to assist families to buy, keep and protect their homes in the Tampa Bay area, HUD Tampa is proud to announce these exciting events:

Saturday, June 21st

H.O.P.E. Expo and Homebuyer Workshop
Harborview Center
300 Cleveland St.
Clearwater, FL 33755

This year's Expo will feature 45 Exhibitors, including Lenders, Realtors, Home Inspectors, Credit Counselors, Downpayment Assistance Programs and more. You can also attend a day-long HomeBuyer Workshop. So before you make the largest investment of your life, visit H.O.P.E. Expo 2008! For details visit: www.hopeexpo.org/index.htm

South Shore Home & Healthy Families Expo
East Bay High School
710 Old Big Bend Road
Gibsonton, FL 33534

Featuring exhibits by approximately 20 local organizations, attendees will have access to a variety of services including: home purchase and financing, insurance, mortgage assistance, home care and renovation, family and social services, and hurricane preparedness and recovery. Informational presentations will cover topics in credit management, financial security, energy efficiency, and hurricane education to provide attendees with the knowledge and resources necessary to improve the quality of housing purchases and safety. For details visit: www.flhome.org/south_shore_expo.html

Many more upcoming events may be found at HUD's Florida Internet Page. Please visit us frequently to check our calendar and obtain other valuable information at:

HUD Florida Page - www.hud.gov/local/index.cfm?state=fl

HUD Florida Calendar - www.hud.gov/local/index.cfm?state=fl&topic=calendar

DID YOU KNOW?

HUD-Funded Housing Counseling Agencies

HUD provides funding to many local agencies to assist homebuyers, homeowners and financially distressed families develop housing solutions, particularly during the current challenges being faced in the country's housing market. In the Tampa Bay Area, please contact any of our HUD Approved Housing Counseling Agencies. A complete listing is found at:

www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=FL

APARTMENT MANAGERS: PLAN NOW FOR
BOTH THE 2008 HURRICANE SEASON AND OTHER DISASTERS!

Did you know your local county health department can help you and your residents prepare plans for dealing with disasters? Although the biggest threat to the Tampa Bay area is hurricanes, many other natural and man-made hazards can threaten you or your organization. In Hillsborough County, the Public Health Preparedness staff can help you develop plans for preparation, evacuation, or sheltering. Contact Ryan Pedigo, Public Health Preparedness, Hillsborough County Health Department ((813) 307-8015 x-4401).

HUD TAMPA IMPLEMENTS ELECTRONIC MAILING LIST

WE ARE UPGRADING OUR OPERATIONS! As current partners and customers may know, HUD Tampa has relied upon its database collected during various events each year. We realize your email address may change over the course of time. Therefore, to stay in contact with HUD news, we ask that each of you visit the following site to register for future mailings. This updated system will ensure the accuracy of our mailing groups as well as enable you to change your own address when the need arises. Thank you for taking a few moments to subscribe to the list as identified below:

www.hud.gov/subscribe/localmailinglist.cfm#fl

When you arrive at the specified page, simply scroll to the "Tampa Field Office News" at the bottom and click the link to subscribe. There, you will find additional information posted by HUD's offices throughout Florida (Jacksonville, Orlando and Miami).

TAMPA BAY SUNCOAST COMBINED FEDERAL CAMPAIGN #1 IN THE NATION
"WAY TO GO!" HUD TAMPA FIELD OFFICE

The Tampa Bay Suncoast Combined Federal Campaign (CFC) was rated #1 in the nation for the highest increase in donations for CFCs raising over $1 million!

The 2007 Campaign resulted in record donation increases from the US Postal Service, MacDill AFB - 6AMW, CENTCOM, SOCOM, Bay Pines VA Healthcare System, James A. Haley VA Hospital, and the St. Petersburg VA Regional Office. HUD's Tampa Field Office received the Suncoast CFC's Double Gold Award, for its participation.

The Suncoast CFC supports and promotes philanthropy throughout federal agencies by providing local federal employees the opportunity to donate to over 2,259 approved charitable agencies to make a difference in the lives of others. Established in 1961, CFC is the only authorized annual fund raising drive conducted by federal employees. In 2007, federal employees contributed more than $275 million to the local, national and international non-profit organizations of their choice. Of the 262 CFC districts worldwide, the Tampa Bay Suncoast CFC raised $2,245,555 in pledges, an increase of 19% over 2006.

According to Tony McKenna, Suncoast CFC Director, "This is the seventh consecutive year that the Suncoast CFC has achieved an increase in federal employee donations to charitable organizations. "The Suncoast CFC covers a 10 county area in west-central Florida (DeSoto, Hardee, Hernando, Highlands, Hillsborough, Manatee, Pasco, Pinellas, Polk and Sarasota) and represents over 30,000 federal employees.

www.suncoastcfc.com

U.S. Department of Housing and Urban Development
500 E Zack Street, #402, Tampa, FL 33602
Phone: (813) 228-2026 Fax: (813) 228-2431