CHLA Reiterates Call for FHA Premium Cut in Wake of FHFA Announcement on GSE Fees

Scott Olson, Executive Director of the Community Home Lenders of America (CHLA) today released the following statement in response to Friday’s Federal Housing Finance Agency (FHFA) release of a pricing grid for Fannie Mae and Freddie Mac loans:

“CHLA reiterates its longstanding call for a cut in FHA premiums, in the wake of FHFA’s announcement of lower Fannie/Freddie fees targeted towards underserved borrowers.

An FHA fee cut would complement this action on GSE pricing, avoid any unintended consequences of FHA adverse selection, and further an agenda of equitable housing and access to mortgage credit.”

CHLA has long been an industry leader in calling for an FHA premium cut, including:

• Making an FHA premium cut the first listed policy priority in CHLA’s annual IMB Report last October
• Spearheading an IMB sign-on letter last May calling for a premium cut
• Highlighting an FHA premium cut in CHLA’s first communication to the incoming Biden Administration
• Making an FHA premium cut a top priority during the Trump Administration