FHA Takes Additional Steps To Bolster Capital Reserves
U.S. Department of Housing and Urban Development (HUD) Press Release
The Federal Housing Administration’s (FHA) is making changes to help strengthen the Mutual Mortgage Insurance Fund (MMI Fund). Among the new initiatives FHA will consolidate its home equity conversion mortgage and standard pricing options, the intent is to both help sustain the MMI fund and lower the home buyer’s upfront closing costs. Other changes to the program include: a 0.05 to 0.10 percent increase to annual mortgage insurance premiums, requirement of lenders to manually underwrite loans for borrowers with poor credit, raise down payments of loans higher than $625,500, and more improvements to FHA’s access and risk management. FHA Commissioner Carol Galante noted, “In addition to protecting the MMI Fund, these changes will encourage the return of private capital to the housing market, and make sure FHA remains a vital source of affordable and sustainable mortgage financing for future generations of American homebuyers.” More...