FHA Proposes New Rules to Strengthen Risk Management
November 30, 2009 – 9:29 amPosted To: MND NewsWire
The Federal Housing Administration (FHA) is moving to reduce risks to its single-family insurance fund through new regulations proposed today. The changes, announced by FHA Commissioner David Stevens, include increasing the net worth requirements of FHA-approved lenders from the current level of $250,000 to a minimum of $1 million within the first year after the rules become effective and to at least $2.5 million within three years of rule implementation. The changes would ensure that FHA lenders are sufficiently capitalized to meet potential needs so that FHA can mitigate losses from and risks to the insurance fund. Under a second proposed change, lenders seeking approval to originate, underwrite, or service FHA loans must meet the eligibility criteria for a supervised or non-supervised mortgagee...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.