NEW YORK–Representatives from government housing agencies said they are making progress in breaking down barriers that discourage mortgage lenders and servicers from working with them.
FHA Commissioner Brian Montgomery, speaking here at the MBA National Secondary Market Conference & Expo, said FHA is at an “important crossroads.”
“It’s clear that our regulatory compliance standards discourage depository institutions from participating as FHA partners,” Montgomery said. “I strongly believe this discouragement has a huge impact on FHA products.”
Montgomery said he is committed to evaluating policies to encourage more FHA lending, citing efforts to increase transparency and ease regulatory burdens. Last week, for example, FHA announced changes to its loan level and annual certifications and defect taxonomy; in March, FHA announced changes to its TOTAL Scorecard.
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