The Federal Housing Administration (FHA) should lower mortgage insurance premiums if the Mutual Mortgage Insurance fund shows continued strength, CUNA wrote to the Department of Housing and Urban Development (HUD) Wednesday. The letter was sent in response to a HUD request for information on executive orders relating to housing regulations.
“Credit unions are a significant and growing source of mortgage credit for homebuyers, including those seeking to purchase a home using a mortgage insured by the Federal Housing Administration (FHA). As such, CUNA has a vested interest in the continued ability of the FHA to offer FHA-insured mortgages as an affordable product in the marketplace.”
CUNA also suggested that FHA should amend or withdraw recent burdensome loss mitigation changes. The application and documentation burden was increased with a recent FHA Mortgagee Letter (2016-14).
CUNA believes the requirements for additional documentation do not assist an institution determine eligibility for loss mitigation assistance and can in face prevent a worthy consumer from obtaining needed assistance.