WASHINGTON – HUD is announcing 14 policy changes to its Federal Housing Administration (FHA) Single-Family mortgage insurance program that lower costs, reduce regulatory burdens, and improve affordability for Americans seeking FHA-insured mortgages. The changes eliminate outdated requirements, reduce administrative burdens, and make FHA financing more efficient for homebuyers and lenders. Since the start of the Trump Administration, the FHA has taken more than 150 actions to streamline its Single-Family program.
“Every unnecessary regulation comes with a cost, and too often homebuyers pay the price,” said Secretary Turner. “If a policy does not protect taxpayers, improve affordability, or expand opportunity for Americans, we should rethink it. As we recognize National Homeownership Month, these FHA actions reflect that commitment by eliminating barriers to expand homeownership opportunities.”
The updates announced today span FHA policies from mortgage origination through servicing and quality control, including:
- Streamlining Appraisal Field Review Requirements, reducing costly QC requirements that average $425 per field review. This change is expected to save industry partners approximately $3.3 million annually while improving alignment with other programs.
- Expanding Flexibility under the Limited 203(k) Rehabilitation Mortgage Insurance Program, by increasing the number of contractor draw requests, making it easier to complete home rehabilitation projects.
- Modernizing FHA Mortgagee Approval and Quality Control, including permanently exempting early payment defaults resulting from natural disasters from the required quality control review sample. This will reduce mortgage costs, expand access for borrowers, and enable smaller lenders to participate in the FHA program.
- Eliminating the Duplicative Requirement for Lenders to Use the Important Notice to Homebuyers Form 92900-B, simplifying the closing process.
- Clarifying Loss Mitigation Requirements Governing Trial Payment Plans to protect the FHA Mutual Mortgage Insurance Fund, establish safeguards to prevent abuse, and ensure that proactive borrowers are not penalized.
These policy updates deliver on HUD’s goals of reducing the cost of homeownership for American families by addressing the cost structure of FHA lending.
