For Immediate Release
Media Contact: Scott Olson
571-527-2601
CHLA Contributes to Discussion on How to Make Smaller FHA Mortgages More Viable in the Marketplace
The Community Home Lenders of America (CHLA) added their recommendations to the public policy discussion on how to make smaller FHA mortgages more viable in the marketplace. CHLA’s recommendations included:
- Definition of Lower-Balance Mortgages
- Changes Needed for Condos, a Key Housing Option for First-Time Buyers
- Revamped Downpayment Assistance Guidelines
- HUD 203k Flexible Criteria Needed
- Reduce High Guarantee Premiums that Preclude Low-Balance Mortgages
- Adjust Allowable Points and Fees for FHA Mortgages between $80,000 and $100,000
In March, CHLA wrote to Secretary Fudge with a detailed list of recommendations to improve the FHA approval process for FHA condominium loans. Several organizations, including the National Association of Realtors, Community Associations Institute, Independent Community Bankers of America, Institute of Real Estate Management and the National Association of Home Builders signed the letter.
Today, CHLA is continuing to make these recommendations as home prices rise and condos remain the most accessible homeownership option for many Americans.
“Due to recent rises in home prices, which are expected to remain elevated even after the current Federal Reserve tightening cycle, condominiums are increasingly a key part of low balance housing inventory, and a key option for first-time buyers,” writes CHLA in the comment letter.
You can read CHLA comments here: https://www.communitylender.org/wp-content/uploads/2022/12/CHLA-FHA-Small-Balance-Final.pdf