Nonbanks and REITs make a bid for FHLBank membership. Community banks and credit unions say that would be a mistake. Is there a middle ground?

FHA finalized a permanent stand-alone 40-year loan modification option for distressed borrowers.

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.

Will lower FHA premiums steal market share from the GSEs? According to analysts, private mortgage insurer pricing still makes the GSEs the better execution for borrowers with credit scores over 680. But private MIs are still nervous.

Investors are pleased that FHFA has improved the capital treatment of commingled securities. The overall industry response to the proposed rule change, though, has been a resounding “meh.”

Federal housing agencies will continue to collaborate on loss-mitigation options following their teamwork when responding to the COVID-19 pandemic.

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.

Potential homebuyers may be adapting to higher interest rates and could gravitate back to the housing market as rates have fallen recently, according to Harvard Joint Center for Housing Studies’ Chris Herbert.

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.