More FHA Reforms Ahead

The secretary of the U.S. Department of Housing and Urban Development testified before a House committee that the agency will be implementing additional measures expected to further reduce the risk to the FHA portfolio. "In these measures we will be focusing primarily on three areas: enforcement, improving the quality and sustainability of new loans insured by FHA, and increasing FHA capital," he said. Among additional steps under consideration is to increase FHA lender accountability on loans not underwritten to FHA standards.