Report Calls For Strengthening FHA, GNMA Resources

Posted by Orb Staff on September 17, 2010 No Comments
Categories : Residential Mortgage

6697_fha_logo Report Calls For Strengthening FHA, GNMA Resources Increased resources for staffing and technology are among 12 recommendations offered by the Mortgage Bankers Association (MBA) to improve the Federal Housing Administration (FHA) and the Government National Mortgage Association (Ginnie Mae). The trade organization's Council on the Future of FHA and Ginnie Mae outlined its recommendations in a new report published this week.

Convened in November 2009, the council consists of senior executives from 27 companies, representing both large national lenders and small independent mortgage bankers.

‘MBA members support both of these institutions,’ says MBA Chairman Robert E. Story Jr. "MBA has long advocated for changes that will help guarantee a strong FHA and Ginnie Mae."Â

For FHA, the report recommends an updated and redefined mission statement (including a re-examination of current FHA loan limits), a strengthened reverse mortgage product and expanded authority to increase premiums. The MBA also wants Congress to give the FHA commissioner the authority to temporarily suspend problem lenders.

Additionally, the FHA's IT systems and processes, including anti-fraud tools, should receive greater investment.

The MBA also touches on multifamily housing, saying the FHA should balance its proposed multifamily risk management protocol against the backdrop of rising affordable-housing needs, declining incomes and the ongoing credit crisis.

Among the recommendations suggested for Ginnie Mae are an examination of appropriate staff levels and a modification of its policy regarding advance funding facilities.

The paper, "The Future of the Federal Housing Administration (FHA) and the Government National Mortgage Association (Ginnie Mae)," is available here.

SOURCE: Mortgage Bankers Association

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