HUD Revises FHA Single-Family Mortgage Insurance Program to Reduce Regulatory Burdens

HUD on Tuesday announced fourteen policy changes to its FHA Single-Family Mortgage Insurance Program to reduce regulatory burdens for Americans seeking FHA-insured mortgages.

In a statement, HUD said the changes eliminate outdated requirements, reduce administrative burdens and make FHA financing more efficient for homebuyers and lenders.

“Every unnecessary regulation comes with a cost, and too often homebuyers pay the price,” HUD Secretary Scott Turner said. “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.”

The updates announced Tuesday cover mortgage origination, servicing and quality control, including:

• Streamlining appraisal field review requirements.

• Expanding flexibility under the Limited 203(k) Rehabilitation Mortgage Insurance Program.

• Modernizing FHA Mortgagee Approval and Quality Control.

• Eliminating the requirement for lenders to use the Important Notice to Homebuyers Form 92900-B, simplifying the closing process.

• Clarifying loss mitigation requirements governing trial payment plans.

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