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.

Some federal agencies extend forbearance request deadlines; Guaranteed Rate ramps up reverse mortgage lending; Brewer, ME-based woman pleads guilty in VA home loan false statements case; Rural Housing Service sets timeline for 2023 housing preservation grant program.

FHA said the amount of rental income from the accessory dwelling unit used to determine income may not exceed 30% of the total income used to qualify the borrower.

FHA is taking comments through April 27 on a draft mortgagee letter meant to spur more affordable mortgage financing for properties with accessory dwelling units.

Details were published in Mortgagee Letter 2023-08.

Issuance of Ginnie Mae MBS declined for the eighth straight quarter during the first three months of 2023. The deterioration was relatively uniform between FHA and VA volume. (Includes four data charts.)

Given the current market liquidity conditions, FHA proposed expediting the processing of claims tied to its home-equity conversion mortgage program.

The HUD OIG will soon report on an audit examining Ginnie Mae’s process for managing troubled issuers, according to Inspector General Rae Oliver Davis.

There are separate toolkits for conventional loans and those backed by the government housing agencies.