There's been a lot of conversation about changing the structure of FHA loans-and I wanted to let you know it hasn't happened...yet!
Here's a quick synopsis on HUD Press Release 10-150: HUD Seeks Public Comment on Three Initiatives to Boost FHA Capital Reserves
HUD is accepting comment on the following policy changes:
1. 10% down payment requirement for new FHA borrowers with credit score below 580.
2. Seller concessions to be reduced from 6% to 3%.
3. Tighter UW standards for manual underwrites.
#2 is giving many of us heartburn as it will be the very audience HUD swears to serve, the affordable housing market, that will suffer the most with this change. We would love to see tiered system come out of this instead of a flat across-the-board 3%.
Here is the link to the actual notice in the Federal Register: http://edocket.access.gpo.gov/2010/pdf/2010-17326.pdf
Speak now - or forever wish you had! To make comments electronically go to: http://www.regulations.gov
Make some noise!
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