White House releases budget request; MBA seeks clarifications from FHA on expanded COVID loss-mitigation options; MBA asks VA to consider appraisal-related policy reforms; HUD finalizes rule removing LIBOR as approved index for FHA ARMs; House bill seeks to make permanent mortgage insurance premium tax deduction.

FHA is cutting annual mortgage insurance premiums, effective March 20. Lenders are seeking operational clarity on loans already in the origination pipeline.

FHA is taking comments through April 17 on a request for information on the barriers consumers and lenders face in accessing the FHA 203(k) rehabilitation mortgage program.

The Department of Housing and Urban Development announced an agreement with Louisiana that will free borrowers from debt related to a program meant to mitigate against hurricane risk post Katrina.

The USDA’s Section 502 loan program could be the answer to the affordable housing crisis in towns near tourist attractions.

FHA to discontinue paper claims option; VA updates loan fees; Mortgage Bankers Association seeks Congressional action on multifamily housing; FHA corrects mortgagee letter on expanded loss-mitigation options; USDA maintains appraisal fee; HUD updates civil monetary penalties.

The change affects new loans endorsed on or after March 20. The last MIP cut occurred in early 2015, when FHA trimmed premiums by 50 bps for 30-year fixed-rate mortgages.

Mortgage servicers and housing officials should be prepared for an uptick in delinquencies following the toxic train derailment in East Palestine, OH.

FHA will expand its loss-mitigation options to borrowers at risk of default even if COVID-19 wasn’t the cause of their economic challenges.

The Office of Inspector General found that the bandwidth on HUD’s virtual private network couldn’t accommodate all the employees who needed remote access during the pandemic.