WASHINGTON, D.C. — The Federal Housing Administration (FHA) is making significant changes to its Single Family mortgage insurance program by rescinding over 12 sub-regulatory policies. This move, announced by U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner, is aimed at reducing the cost of homeownership, streamlining processes for lenders, and removing financial and regulatory barriers for first-time buyers.
“These rescissions are bold, necessary, and long overdue,” said Secretary Turner. “Under President Trump’s leadership, we’re slashing red tape that drives up costs and shuts families out of the market. Every hardworking American deserves a fair shot at owning a home. These changes open doors for families and lenders, unlocking opportunities nationwide.”
Key rescissions include the removal of outdated appraisal protocols, enabling FHA to align its practices with industry standards. This update is expected to lower appraisal costs and reduce delays for borrowers. FHA is also eliminating its requirement for full-time employment for Direct Endorsement underwriters, granting lenders increased flexibility to manage staffing and reduce origination costs.
Additionally, the rescission of the Supplemental Consumer Information Form requirement will lessen the administrative burden on lenders, while the removal of the Federal Flood Risk Management Standard for new construction boosts the amount of land available for development and lowers building costs for FHA-insured homes.
FHA’s decision to eliminate mandatory pre-endorsement inspections for homes in disaster areas marks another significant update. This change aligns FHA’s policies with industry norms, giving lenders discretion to assess risks and act accordingly, thereby avoiding delays during times when inspection resources are stretched.
The updated policies aim to create a more efficient lending process, reduce financing costs, and expand access to affordable housing. HUD views these changes as a step toward strengthening the housing market while saving taxpayers millions of dollars through streamlined operations.
By removing unnecessary barriers, FHA’s policy revisions seek to provide a smoother and more affordable homebuying experience, ensuring more Americans have access to the benefits of homeownership.
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