From David Streitfeld at the NY Times: F.H.A. to Raise Standards for Mortgage Insurance
The Federal Housing Administration … is expected to announce on Wednesday that it is tightening standards.
Borrowers who get an F.H.A.-insured loan will soon have to pay a higher initial insurance premium. The new premium will be 2.25 percent of the value of the loan, up from 1.75 percent.
… The maximum amount of assistance will drop to 3 percent of the value of the property, from the current 6 percent.
Other changes will try to hold lenders who participate in the F.H.A. program more accountable by publicly reporting their performance rankings.
…
As of December, the F.H.A. was insuring 5.8 million single-family residences that had a total loan balance of $750 billion. More than half a million of the loans were seriously delinquent and heading toward foreclosure.
There is much more in the article
