FHA is seeking additional comments on its planned Payment Supplement Partial Claim program.

Seeing plenty of room in FHA's capital ratio, lender trade groups are calling for an end to FHA's requirement of MI for the life of the mortgage.

“We have shown it is possible to meet the mission while also being fiscally prudent and being a good steward of taxpayer funds,” said FHA Commissioner Julia Gordon.

Mortgage applications were up 2.8% on a weekly basis while interest rates stayed put.

The average credit scores for new originations of FHA mortgages declined somewhat after BofA and JPMorgan Chase ceased correspondent aggregation in the market.

Both FHA and VA volume in Ginnie MBS issuance declined on a monthly basis in October.

Demand for mortgages from banks declined in the third quarter and many banks further tightened underwriting.

ARMs accounted for 10.7% of mortgage applications last week.

Priorities at FHA include facilitating loan assumptions and originations of small-balance mortgages.

GSE securitization of mortgages with private MI declined in the third quarter while FHA activity increased.