In a wide-ranging talk at a virtual event held by Women in Housing Finance Tuesday, Wade shared details of how she plans to fulfill these goals, and fielded questions from attendees about FHA policies that could play into their business plans in the coming year. The following are some key points that arose from the discussion.
The FHA is considering building validation services technology
More defect taxonomy changes are in the works
The FHA will continue the process of improving its error classification system in order to foster clearer communication regarding compliance, she said. The administration also plans to apply such improvements to the servicing sector as part of
The FHA is considering separating HECMs from the main MMI fund
She also said that she likes the notion of removing the FHA’s reverse mortgage program from the main MMI fund.
FHA will keep credit flowing but is unlikely to lower premiums to do so
“The population of borrowers that FHA serves are more adversely affected by COVID-19. It’s … important that we stay vigilant and able to respond to any challenge. We’re constantly looking at credit availability and where FHA needs to step in,” she said.
Wade noted that the FHA is particularly concerned about helping minority borrowers who comprise roughly 40% of its market, and first-time homebuyers who comprise more than 80%.
While many would like to see a change to premiums in order to help those borrowers, it’s not a move Wade would favor, she said.
“I think there are other tools,” said Wade, noting that the fund relies on premiums to build capital.