The Department of Housing and Urban Development (HUD) has unveiled 14 policy changes to the Federal Housing Administration (FHA) Single Family mortgage insurance program that are designed to lower costs, reduce regulatory burdens, and improve affordability for homebuyers using FHA-insured mortgages.
The changes include an upgrade to the Appraisal Field Review Requirements that will reduce expensive quality control requirements; expanding flexibility under the Limited 203(k) Rehabilitation Mortgage Insurance Program to increase the number of contractor draw requests; updating FHA mortgagee approval and quality control to permanently exempt early payment defaults resulting from natural disasters from the required quality control review sample; and clarifying loss mitigation requirements governing trial payment plans.
“Every unnecessary regulation comes with a cost, and too often homebuyers pay the price,” said HUD Secretary Scott Turner. “If a policy does not protect taxpayers, improve affordability, or expand opportunity for Americans, we should rethink it. As we recognize National Homeownership Month, these FHA actions reflect that commitment by eliminating barriers to expand homeownership opportunities.”
Hooray!! They’re finally figuring it out!!
FHA Mortgage Insurance fully funded and added to mortgage payment at closing is a huge rip off. Years ago, 12 months of insurance was collected and removed when 80% LTV achieved. Now it is never removed. This does not help buyers!
Change this!
Funny how they slipped that thru Kathleen. Where were the people who were supposed to protect us?
FHA often requires “repair” work to be done before closing. The 203(k) program allows buyers to finance the work to be done after closing. But many contractors reject this work due to out-of-pocket expenses they must carry until they get paid. Extra draws for contractors will help attract more contractors to do this work.
You can still cancel it But it is left up to the homeowner to know that. You have to call or write the mortgage company and ask them to take it off and they don’t have to if they feel you are still a risk. If you have made perfect payments and had no reason for them to worry about you paying your mortgage then you have a chance of them taking it off.