MBA Calls for Lower FHA Premiums and Mortgage Pricing Changes in Affordability Roadmap

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Source: Original announcement or official record.

The Mortgage Bankers Association released a sweeping policy roadmap October 14 proposing changes to mortgage pricing, federal housing insurance and lender regulations that it says could lower housing costs. The document, titled Affordability in Action, was released at MBA’s annual convention in Chicago. It is a package of industry recommendations, not an announcement of adopted federal rules. MBA wants Fannie Mae and Freddie Mac to reconsider three-bureau credit reports for lower-risk borrowers, reduce and align loan-level price adjustments for home purchases, and responsibly expand automated valuation and AI-assisted underwriting.

It also proposes reducing Federal Housing Administration annual mortgage insurance premiums. MBA estimates a hypothetical 20-basis-point premium reduction would save a borrower with a $400,000 FHA loan nearly $800 a year. No such change was announced. The association is also seeking changes to loan originator compensation rules so lenders can more readily match competitors’ offers, a streamlined refinance pathway for eligible GSE borrowers, simpler TILA-RESPA disclosures and changes to VA refinancing procedures.

Its multifamily and housing-supply proposals include lower FHA program administration costs, more condominium and construction financing, modernization of the FHA 203(k) rehabilitation program and adjustments to construction-related requirements. The paper also calls for recalibrating bank capital requirements for mortgage exposures and reviving private-label securitization. Some recommendations, including its opposition to rent control, are contested policy positions rather than consensus solutions. Any implementation would depend on action by the relevant agencies and enterprises.

Borrowers should not interpret the roadmap as an immediate change in loan pricing or eligibility.