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.
A lawmaker hinted recently that there’s consideration of moving the U.S. Department of Agriculture’s Rural Housing Service under the Department of Housing and Urban Development’s control, but any move appears to be at a conceptual stage.
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.
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.