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Administration to issue more mortgage protection rules
A federal agency is planning additional regulations to prevent people from obtaining mortgages that they can't afford.
The Federal Housing Administration (FHA) has the authority under the Dodd-Frank financial reform law to issue its own qualified mortgage rules, outside of the ones the Consumer Financial Protection Bureau finalized in January.
Brian Sullivan, an FHA spokesman, said the agency is beginning the rulemaking process and plans to publish a proposal that will be available for comment in “the near future,” Bloomberg reported Thursday.
Fluctuations in mortgage insurance premiums and fees, scheduled to activate on April 1, may qualify the cost of FHA loans as less safe, under the definition in the CFPB provisions.
The FHA is the largest mortgage issuer in the world, currently insuring 4.8 million single family mortgages and 13,000 multifamily projects, according to the agency’s website.
