FHA Makes Major Changes to Mitigate Risk as Capital Reserve Level Drops Below Target Level
September 24, 2009
The FHA announced sweeping changes to several aspects of its single-family mortgage insurance program on the heels of learning that its capital reserve levels have fallen below allowable levels. But it’s unclear how quickly tighter underwriting and tougher standards for FHA lenders will restore the program’s financial health – particularly at a time when housing markets are still under severe...