Request for Information published today seeks industry input as a starting point to encourage greater origination of small balance mortgages for FHA insurance.
The Federal Housing Administration (FHA) is announcing today the publication of a Request for Information (RFI) in the Federal Register seeking input on ways it can facilitate increased access to smaller balance mortgages through its Single Family mortgage insurance programs. Today’s RFI will assist FHA as it explores opportunities to offer safe and sustainable mortgage credit to aspiring homeowners who live where houses may be less expensive.
“The input we receive through this RFI will help us better understand how FHA can make small mortgages more broadly available and affordable for those who need them,” said Federal Housing Commissioner Julia Gordon. “The RFI responses will help drive our programmatic work to increase access to homeownership and to close the racial homeownership gap.”
Specifically, the RFI asks questions concerning the current availability of small mortgage financing, barriers and disincentives to small mortgage lending transactions, changes to policies or processes that would encourage origination of more FHA-insured small balance mortgages, and considerations regarding liquidity provided through securitization.
Instructions for submitting comments, which are requested by December 5, 2022, can be found in the RFI.
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