FHA Pushes Ahead on Risk-Based Premiums, Renews Effort on Downpayment Aid, Tries to Spur REO Sales
June 19, 2008
The Department of Housing and Urban Development will begin implementing a controversial new premium pricing structure based on borrower risk, which will enable government-approved mortgage lenders to compete directly with conventional lenders that regularly use risk-based factors to price mortgage insurance risk. In a June 11 mortgagee letter, HUD announced a new risk-based matrix to...