FHA proposed tweaking its limited 203(k) rehabilitation loan program to reduce financial burdens on contractors.

FHA has proposed changes to its claims without conveyance of title auctions and its limited 203(k) rehabilitation program.

The proposal would raise the number of draw requests permitted per contractor from two to four under FHA's Limited 203(k) Rehabilitation program.

Joseph Gormley and Frank Cassidy, the individuals nominated to lead Ginnie Mae and FHA, respectively, maintained support for actions taken by the agencies this year in responses to the committee.

The U.S. Mortgage Insurers argued the FHA Mutual Mortgage Insurance Fund is vulnerable to a severe economic downturn, and suggested it be held to the same standards as the government-sponsored enterprises.

FHA waived a policy that required lenders to provide notices to borrowers about various protections, a move the agency said would lighten some of the burden on lenders.

Lending was down slightly across products in the third quarter. UWM remained the largest conventional-conforming producer and moved into the top spot among originators of government-insured loans. (Includes two data tables.)

Among a group of servicers with $5.45 trillion in volume, the delinquency rate declined across all late categories during the third quarter. (Includes two data tables.)

The U.S. Mortgage Insurers said FHA’s Mutual Mortgage Insurance Fund is overdue for reforms, with the 2% capital ratio requirement not sufficient to meet the standards the GSEs and private insurers must satisfy.

Some 4.3% of FHA loans and 7.5% of VA loans are underwater, according to Intercontinental Exchange’s November mortgage report.