Top Producers 2020 of FHA-insured loans Nos. 1-25

National Mortgage News is counting down the top 25 Federal Housing Administration originators in the 2020 Top Producers Survey.

Though market conditions are rapidly changing due to the coronavirus pandemic and the government's response to it, the insights these producers offered in February create a snapshot of the industry's most contentious issues. A number of those answers involved the FHA program.

For Andrew Oliva, who was the sixth most prolific FHA originator on the list, the most problematic issue at the time was "the ability for FHA/VA borrowers with super high rates but bad credit to easily get a lower rate without having to go through [the Higher Priced Mortgage Loan impound requirements].”

“If they are paying 6% now and qualify for a rate reduction refinance to 4.5%, why would they need HPML for that?” wrote the senior loan officer from Oceanside Mortgage in Toms River, N.J.“What has to happen is that HPML should not apply to Streamline refinances."

His colleague at Oceanside, Laurie Kleissler, who ranked 10th on the list, commented that "The mortgage industry needs to address the problem with down payment assistance programs and how they often leave the homeowner with a higher rate that is difficult to get out of." Even with the ability to go to loan-to-value ratios as high as 96.5%, many FHA borrowers need help from the DPA programs.

Other respondents, who are not among the top 25, gave answers that indicated why they prefer not to do a lot of FHA loans.

"I believe the mortgage industry needs to address the FHA annual mortgage insurance premiums and should make them risk-based again, so the higher your credit score, the better the premiums you get...just like conventional PMI," said Chad Bowers, a senior mortgage consultant at Huntingdon Valley Bank in Wilmington, Del. "I also think FHA needs to address the student loan problem and having to count 1% of the balance on deferred student loan or ones in income-based repayment programs.”

The government-guaranteed lending programs need to better address a particular segment of the market, said Jill Thacker, a loan officer in CMG Financial's Las Vegas office. "I do wish there were more options for condo buyers who need to go FHA or VA. FHA is taking a step in the right direction but that process is going to need to change in order for it to make a difference," she said.