This week FHA will announce major changes to ensure its long term financial soundness. FHA is trying to balance three fundamental objectives: 1) financial soundness – ensuring that its capital ratio returns above 2 percent, 2) fulfilling its mission of serving borrowers not adequately served by the private sector and 3) facilitating the recovery of the housing industry and the overall economy.
The National Association has met with the Commissioner and expects the changes to include: Improve loan quality, increase the mortgage premiums, lender eligibility changes, risk management improvements, and FHA budget proposals.
Click here to read NAR’s Brief: http://www.realtor.org/wps/wcm/connect/dd4ce500410d816592d4b208069f8e0c/government_affairs_fha_issue_brief_011510.pdf?MOD=AJPERES&CACHEID=
