HUD Seeks Public Comment On Risk Mitigation Initiatives

Posted by Orb Staff on July 16, 2010 No Comments
Categories : Residential Mortgage

partment of Housing and Urban Development has [link=http://edocket.access.gpo.gov/2010/pdf/2010-17326.pdf]published[/link] a notice announcing a 30-day period of public comment on three measures designed to mitigate risk to the Mutual Mortgage Insurance Fund while promoting sustainable homeownership for Federal Housing Administration (FHA) borrowers. The three proposals involve updating the combination of credit and down payment requirements for new borrowers; reducing seller concessions from 6% to 3%; and tightening underwriting standards for manually underwritten mortgage loans. ‘These are the latest in a series of changes to allow the FHA to manage its risk better while continuing to support the nation's housing recovery,’ says FHA Commissioner David Stevens. ‘By protecting FHA's capital reserves, we can continue providing affordable, responsible mortgage products and will remain the nation's largest source of home purchase financing for underserved communities.’ SOURCE: Department of Housing and Urban Develo

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