The U.S. Department of Housing and Urban Development has released its annual update to Federal Housing Administration loan limits for 2026, increasing both forward mortgage ceiling amounts and the maximum claim amount for Home Equity Conversion Mortgages. The adjustment reflects continued home price growth across much of the country and is intended to preserve access to FHA-insured financing for borrowers in a wide range of housing markets while keeping federal programs aligned with current market realities.
In a much-anticipated move late this week, the Federal Reserve lowered its benchmark interest rate by a quarter of a percentage point for the third time this year, a decision that financial markets, loan officers and households have been watching closely. The Federal Open Market Committee’s action, which reduced the federal funds rate to a range of roughly 3.5 %–3.75 %, was aimed at supporting a slowing economy and easing borrowing costs.
In a move that could reshape federal housing policy, leaders of the U.S. House Financial Services Committee recently introduced a comprehensive bipartisan legislative package aimed at alleviating America’s persistent affordable housing crisis. The proposal — formally titled the Housing for the 21st Century Act — was revealed ahead of a scheduled committee markup, setting the stage for debate as lawmakers in both parties look for solutions to the nation’s deepening supply and affordability challenges.
FICO has reached an agreement with Federal Housing Finance Agency (FHFA) to release the historical datasets for its newer credit‑score model, FICO 10T, paving the way for broader adoption by the major government‑sponsored enterprises (GSEs). In a corporate announcement, FICO said the three national credit bureaus will deliver 10T data connected to single‑family loan‑level records to the GSEs.
Mortgage lenders are seeing better per‑loan revenue in 2025 than in recent years, yet the cost to originate those loans remains stubbornly high, creating a squeeze even as overall profitability improves. According to a new update from Freddie Mac, the average cost to produce a mortgage in the second quarter of 2025 was about $11,800 per loan — a modest improvement from the first quarter’s roughly $13,400 for retail‑only lenders, but still slightly above where costs stood in late 2023.
Over the years many FHA lenders have completed FHA deals with a gift incorrectly resulting in an indemnification. For those not familiar with the term “indemnification” it means that the FHA is removing the FHA insurance for a specific mortgage loan. If that loan defaults the lender would have to make good on the loan or have to buy the loan back since the FHA loan has lost their FHA insurance. The new Single Family Handbook 4000.1 spells out how to underwrite deals with a gift.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
All FHA mortgage loans are assumable.. All underwriters must know the rules to either approve or deny the assumptor of the mortgage loan being assumed.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
When credit scores are obtainable it must be used to determine eligibility for FHA insured mortgage loans. The scores used are the middle score for a borrower with three scores, or the lower score when a borrower only has two scores. After examining each borrower’s credit in the transaction a decision score must be determined. A mortgage transaction multiple borrowers you must use the middle or lowest score for the borrowers, The decision score determines the loan to value and the pricing of the loan since most mortgages are risk based pricing.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Revitalization Areas are HUD designated geographic areas authorized by Congress under provisions of the National Housing Act. Revitalization Areas are intended to promote “the revitalization, through expanded homeownership opportunities, of revitalization areas.”
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
If you are thinking of buying a home in the near or distant future then you better start saving your money to buy that home. You need money for the down payment and for the closing. There are many different properties for sale as there are different buyers/borrowers out there buying the different properties.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The Federal Housing Administration (FHA) saw its share of the mortgage market soar to 72% of all insured mortgages issued in 2008 and to 25% of the total origination market in 2009 as other lenders pulled back and FHA moved into one of the two roles it was designed to fill, as a counterforce providing access to credit when the private pulls back, typically because of economic stress.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The natural disaster can hit anywhere and anytime somewhere in the United States. No state is immune from a disaster. If a disaster does happen and the President of the United States declares an area “Presidential Declared Federal Disaster Area” all kinds of federal programs come into play.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Some people say yes, but there is a lot more to it. A few years ago you get a subprime loan without much trouble. The mortgage mess has led to a lot more caution in the way home loans are approved these days. If your credit needs work, there are still some things you can do to maximize your chances of getting a loan, but you should really ask yourself some hard questions before you put much effort into finding out what loan options are available
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
All mortgage brokers, and mortgage lenders are not allowed to discriminate when lending money. All mortgage brokers and mortgage lenders have the borrower execute all kinds of documentation stating as a mortgage broker or mortgage lender that we do not discriminate in lending money. How many really look at the documents and what we are supposed to do and not to do.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Every now and then I go over the various issues of the Federal Register to see if HUD/FHA are proposing or have issued final rule changes.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.