FHA Unveils Stricter Guidelines

POSTED ON: WED, JAN 20, 2010
The Federal Housing Administration (FHA) has issued new guidelinesthat will require higher down payments from riskier borrowers, reduce allowable seller concessions and increase enforcement on FHA lenders. The policy changes are designed to strengthen the mortgage insurance agency’s capital reserves, which have fallen below mandated levels, while enabling it to continue to provide access to homeownership for underserved communities. At a briefing this morning, FHA commissioner David H. Stevens said, “These changes are overdue…While change is difficult, these are the right moves and [they] will actually bring confidence back to the market.”