FHA could sustain a zero-downpayment loan option for first-time homebuyers if Congress would allow it, analysts at the Urban Institute contended in a new proposal.
The federal government in 2026 will provide $293.43 billion in loans and loan guarantees to rural households. Some $27.43 billion will come from the Rural Housing Service and $107.52 billion through FHA and VA.
Ginnie Mae President Joe Gormley said changes to the loss-mitigation policies for loans backed by FHA and the Department of Veterans Affairs revealed that some issuers had higher exposure to riskier loans.
Without much relief in sight for borrowers’ pockets, the industry expects growth in non-agency securitizations from loans priced with higher risk premiums by Fannie Mae and Freddie Mac.
Economists have dialed back their more optimistic expectations for mortgage rates this year after Iran war-triggered inflation undid the rate boost from MBS purchases by the GSEs.
Industry members expect that the Basel III re-proposal could offer a modest boost to the mortgage industry over time, but seems unlikely to bring banks back to the business in droves.
FHA expects to rescind a suite of policies next month as a continuation of its deregulatory approach to tackling affordability, said FHA Deputy Assistant Secretary for Single-Family Housing Matt Jones.
The Mortgage Bankers Association adjusted its economic forecast to account for the long-term inflationary effects of war in the Middle East, anticipating a rate hike from the Federal Reserve next year.
Onity revised the terms of its sale of home equity conversion mortgage servicing rights to Finance of America Reverse after receiving feedback from Ginnie Mae.