The recent rise in FHA delinquencies appears to be an artificial effect caused by the new trial payment plans borrowers must complete before loans can be modified, according to research by the Center for Responsible Lending.
The two biggest issues the MBA has with the bill in the Senate involve loan limits for FHA multifamily mortgages and provisions in an effort to limit institutional ownership of single-family properties.
One of the mortgagee letters that established the policies in 2022 required that HUD document all CWCOT property sales, but the HUD OIG said it didn’t keep records verifying buyers, such as the statements owner-occupants must sign verifying they intend to use the home as a principal residence.