The rescinded fee would have added $1,250 in cost to the purchase of a $300,000 home. Or, borrowers could have elected to pay an extra $24.75 per month on their mortgage.

The success of the Section 203(k) program depends on reforms that would make it more accessible for borrowers and operationally feasible for lenders, according to the Mortgage Bankers Association.

The Mortgage Bankers Association wants FHA to extend to all lenders certain documentation waivers recently made available to Reverse Mortgage Funding transferees.

The government could default on its debt obligations as early as June 1, the Treasury Department warned. The development could have major ramifications for mortgage lenders and the broader economy.

FHFA Director Sandra Thompson said critics of the new schedule of upfront fees for loans backed by Fannie Mae and Freddie Mac misunderstand the nature and purpose of the price changes.

The Mortgage Bankers Association is opposed to the Federal Trade Commission’s plan to ban most noncompete clauses. However, several individual commenters from the mortgage industry favor the proposal.

Industry stakeholders believe the new upfront fee changes are unworkable and penalize more qualified borrowers.

Home sellers have become more receptive to FHA offers now that the market has started to cool, according to Black Knight Vice President Andy Walden.

FHA is taking feedback through April 27 on a draft mortgagee letter proposing the use of rental income from accessory dwelling units to calculate borrowers’ eligibility for a home loan.

The industry largely asked FHA to align the policies of the Section 203(k) rehabilitation loan program with those of the government-sponsored enterprises.