In a move intended to reduce the cost of homeownership and eliminate unnecessary burden, the Department of Housing and Urban Development on Friday rescinded more than a dozen regulatory requirements in the Federal Housing Administration’s single-family mortgage insurance program.
Specifically, FHA rescinded:
- A supplemental consumer information collection regarding the borrower’s language preference and housing counseling the borrower may have received.
- Outdated appraisal protocols in order to better align practices with industry standards and accelerate appraisals.
- A requirement that Direct Endorsement underwriters employed by mortgagees be full-time employees, thus providing greater flexibility in employing underwriters.
- The Federal Flood Risk Management Standard for new construction eligibility, removing limits on land available for FHA-insured property construction.
- Pre-endorsement inspection requirements for properties in federal disaster areas, aligning with industry standards.
“These rescissions are bold, necessary, and long overdue,” commented HUD Secretary Scott Turner. “We’re slashing red tape that drives up costs and shuts families out of the market. . . . These changes open doors for families and lenders, unlocking opportunities nationwide.”
