HUD Advised to Tighten FHA Requirements as Downpayment Aid Becomes More Prevalent
November 18, 2005
Officials at the Department of Housing and Urban Development are considering modest changes to FHA requirements designed to get a better grip on the use of downpayment assistance – but they say they would rather charge higher insurance premiums than impose tougher underwriting standards that could choke off the program. According to a new report from the Government Accountability Office, some 30.5 percent of new FHA loans originated in fiscal 2004…