ewilley@imfpubs.com

FHA is looking to improve mortgage affordability by reversing regulations that add costs to housing, according to Matt Jones, FHA deputy assistant secretary for single-family housing.

Under the current regulatory regime enforced by FHA and other federal and state-level entities, lenders are effectively relegated to serve as “compliance shops,” Jones said during a recent panel discussion at the Department of Housing and Urban Development’s Innovative Housing Showcase in Washington, DC.

On the sidelines, he said if mortgage rates go down further, that would help affordability. However, Jones noted that many homeowners are “locked in” with low rates and not looking to sell, while similar properties are no longer economically viable to build.

Jones said FHA plans to take a “hard look” at the updated International Energy Conservation Code requirements enacted during the Biden administration for new FHA-financed construction. It’s a move the Mortgage Bankers Association has advocated for.

For more details, see the new edition of Inside FHA/VA Lending, now available online.