The Mortgage Bankers Association and the Housing Policy Council have called for specific changes to the proposed updates to FHA’s defect taxonomy for servicing loan reviews.
The Mortgage Bankers Association this month asked FHA to consider using its single-family drafting table to seek comments from the industry before it finalizes guidance on its new payment supplement loss mitigation program.
The new rules come a month after FHA released a final rule eliminating the requirement that mortgage lenders register all branch offices where they conduct FHA business.
The proposed program could be improved by simplifying communications with borrowers and making changes that expand the number of borrowers who can be helped, industry and consumer groups said.
Allowing lenders to provide downpayment assistance on FHA loans would extend homeownership to underserved borrowers who have a difficult time amassing even a 3.5% downpayment, the former Ginnie Mae president said.
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