2018 was a year of success for the Federal Housing Administration (FHA), with continued growth and improved protections for homebuyers and lenders alike.
The FHA has made great strides in 2018 to further its mission of providing access to mortgage credit in areas that may otherwise be too expensive or risky for potential borrowers. First, the agency raised loan limits for single family homes, allowing more borrowers to qualify for FHA financing and helping ensure more people could buy a home. This increase in loan limits is especially beneficial for borrowers in more expensive areas of the country, such as California and New York, who can now take advantage of the FHA’s flexible lending standards.
Another major milestone for the FHA was the launch of its new Home Affordable Refinance Program (HARP), which allows borrowers who are behind on their mortgages to refinance into a more affordable loan. HARP is available to borrowers whose loan-to-value ratio is above 80 percent and who meet certain other requirements. The program aims to help homeowners who have been unable to take advantage of lower interest rates due to being underwater on their mortgage.
The FHA also implemented new regulations that protect lenders from certain legal liabilities. These new rules guard against fraud and predatory lending practices by increasing lender’s knowledge of the risks associated with FHA loans and helping to ensure that lenders adhere to standards.
In addition to increasing access to mortgage credit and protecting lenders, the FHA also introduced new technology to speed up the mortgage process and reduce paperwork. In 2018, the FHA announced it was rolling out a new electronic system for processing FHA loans, which will make the process quicker and more efficient overall.
The year 2018 was a fantastic one for the FHA, as the agency increased access to mortgage credit, protected lenders, and embraced technology in order to make the process smoother for borrowers and lenders alike. Looking ahead to 2019, we can expect to see even more advances from the FHA as they continue to focus on finding ways to make homeownership more accessible and affordable.
As we head into 2019, we can look back on a successful and productive 2018 for the Federal Housing Administration (FHA). This past year saw a number of initiatives taken by the FHA towards increasing access to mortgage credit, protecting lenders, and streamlining the mortgage process.
To begin with, the FHA raised loan limits for single family homes. This move opened up mortgage financing to more potential borrowers, particularly those living in more expensive areas of the country like California and New York. This step should help more people to become homeowners, as well as make it easier for those already in homeownership to remain there. Furthermore, the FHA launched the Home Affordable Refinance Program (HARP) to help borrowers who are behind on their mortgages refinance and find more affordable loans.
The FHA also instituted new regulations which protect lenders from fraudulent or predatory lending practices. These regulations increase the knowledge of the risks associated with FHA loans and help to ensure that lenders are held to a given standard. In addition, the FHA adopted a new electronic system for processing FHA loans in order to make the process quicker and more efficient. By decreasing paperwork and expediting transactions, this move should go a long way towards improving the customer experience for both borrowers and lenders.
The accomplishments of the FHA in 2018 showcased the agency’s commitment to making homeownership more accessible and affordable. As we move into 2019, we are likely to see these efforts increase as the FHA strives to meet the needs of more borrowers and make the mortgage process simpler.
This article was contributed on Dec 09, 2023