WASHINGTON — America’s Credit Unions and the Defense Credit Union Council have joined 12 other national housing, lending and real estate organizations in urging the Federal Housing Administration to move quickly on proposed changes to its minimum property requirements, saying the overhaul could lower mortgage costs and expand access to homeownership.
In an Oct. 29 joint letter to Joseph M. Gormley, acting assistant secretary for housing and federal housing commissioner, the organizations endorsed the FHA’s draft policy update, “Modernizing and Strengthening Minimum Property Requirements.” They said the proposal could represent one of the most significant changes to FHA valuation policy and its financing process in years.
“We believe it would make FHA loans more efficient to originate, reducing the costs for lenders and consumers alike,” the organizations wrote. They urged the agency to implement the policy expeditiously, citing its potential to improve housing affordability.
More Closely into ‘Alignment’
The coalition said bringing FHA property valuation policies more closely into alignment with those used by Fannie Mae and Freddie Mac would reduce operational, staffing and compliance costs for lenders and appraisers. It also said borrowers would benefit from protections associated with widely used conventional mortgage programs.
The letter linked the proposal to President Donald Trump’s March 13 executive order, “Promoting Access to Mortgage Credit,” and said reducing regulatory burdens could help more creditworthy borrowers obtain affordable financing for safe housing.
The signatories described FHA as a key program for first-time homebuyers and said closer alignment with conventional financing standards could make FHA-backed loans more attractive to lenders and borrowers.
Additional Signees
Along with America’s Credit Unions and the Defense Credit Union Council, the letter was signed by the American Bankers Association, Broker Action Coalition, Center for Responsible Lending, Collateral Risk Network, Community Home Lenders of America, Housing Policy Council, Independent Community Bankers of America, Mortgage Bankers Association, National Association of Realtors, National Association of Mortgage Brokers, National Housing Conference and Real Estate Valuation Advocacy Association.
The organizations said they would welcome further discussions with FHA and planned to submit technical comments individually through the agency’s Drafting Table process. The letter did not specify a date for finalizing or implementing the proposed changes.
