Changes at the FHA, which is currently serving a third of the mortgage market, could have an impact on Spring home sales. Effective April 15th, the FHA is implementing the first of these policy changes. Click below for a detailed overview of these changes with David Stevens, FHA Commissioner and CNBC's Diana Olick.
Labels: april 15, change, federal housing administration, FHA
NEW YORK (CNNMoney.com)January 20, 2010: 3:53 PM ET -- It's going to be harder to get a government-backed mortgage from now on.
Looking to shore up its weakening finances, the Federal Housing Administration is set to announce stricter standards on Wednesday.
The agency, which insured nearly a third of new mortgages in 2009, will increase the premium it charges for its mortgage insurance and require those with weaker credit scores to come up with larger downpayments.
The FHA will also reduce the amount of money a seller can provide a homebuyer for closing costs, as well as tighten its enforcement of lenders.
"Striking the right balance between managing the FHA's risk, continuing to provide access to underserved communities, and supporting the nation's economic recovery is critically important," FHA Commissioner David Stevens said in a statement. "Importantly, FHA will remain the largest source of home purchase financing for underserved communities."
Labels: downpayment, federal housing administration, FHA, mortgage insurance
