Monday, September 7, 2009

1 Year Moratorium on FHA SF Risk Based Premiums Expires Oct. 1; Expect Focus on FHA Soundness in Coming Month.

The 2008 Recovery Act provision that required a one year moratorium on FHA SF risk based premiums expires on September 30th. FHA Mortgagee Letter 08-22 HERE (MS Word) had details about that moratorium.

With time so short HUD/FHA will need to reissue a new Mortgagee Letter and/or Federal Register notice VERY soon, to advise whether the moratorium will continue or be allowed to expire.

Logically (I know , I know..) this decision should be the tied to the required annual review of financial soundness of the FHA fund now underway; it would seem logical to implement risk based pricing BEFORE going to Congress to ask for funds to reach minimum capital requirements if capital has fallen below minimum required levels. If capital is above minimum levels, less pressure to implement risk based premiums.

Stay tuned, should be some real focus on FHA SF fund soundness this month.


Originally created and posted on the Oregon Housing Blog.

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