HUD Plans for Risk-Based FHA Mortgage Loan Pricing
February 18, 2002
FHA lenders and borrowers seeking federal mortgage insurance would both benefit from a risk-based pricing scheme being crafted by the Department of Housing and Urban Development, according to the Bush administration’s fiscal 2003 budget proposal released earlier this month. HUD’s flexible pricing plan would enable lenders to qualify borrowers with impaired credit or limited sources for FHA-insured mortgages.