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.
As most of you are aware, I teach a few government underwriting classes for FHA Online University. Very recently while teaching the underwriting courses I have decided that there are two types of underwriters, those that embrace underwriting in the truest sense of the word and by that I mean underwriting beyond the AUS finding and those underwriters that still embrace the AUS as the literal decision and by this I mean an underwriter that has chosen to remove themselves from the underwriting process to act solely as one who validates the AUS, which has made the decision.
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.
With all of the recently implemented FHA appraiser and appraisal changes, it can be somewhat confusing as to what detail and information you as a loan officer or processor may need to be aware of when it comes to new appraisal orders and appraisals received as the result of case transfers.
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.
There’s no question credit underwriting guidelines have tightened. So much so that a person pretty much needs excellent credit just to be able to refinance to a lower interest rate nowadays. Occasionally, I receive inquiries from people asking for advice on what to tell former clients who are facing foreclosure due to financial struggles because we have few if any lending options remaining to help them.
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.
Hello Everybody – Cannot believe 2009 is going by so fast. As I stated last week – not much is really going on with changing guidelines, etc. with FHA, which is why I am going back to basics for a few weeks. Sometimes it is the basic that can be the most confusing.
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.