Coming FHA Changes

For borrowers, Federal Housing Administration changes are on the horizon. Some of the new policies are effective next month, and are all part of a plan to bolster FHA?s reserves. Last year, FHA insured one-third of all approved mortgages. The capital-reserve ratio is no longer at the Congress-mandated 2 percent threshold. FHA Commissioner David Stevens even voiced his intention to hire a chief risk officer, a position the administration has never had since its 1934 inception. ?To be clear, the fund?s reserves are sufficient to cover our future losses, so the FHA will not require taxpayer assistance or new Congressional action,? Stevens said in a September press release. In efforts to avoid a bailout, the FHA will make a series of policy changes: ? The up-front mortgage insurance premium (