http://www.realestateappraisertips.info/ - Appraisers This Means Less Orders: FHA to Raise FICO Requirements, Reduce Seller Concessions, Increase Premiums and Downpayment
Mortgage News Daily is reporting: FHA to Raise FICO Requirements, Reduce Seller Concessions, Increase Premiums and Downpayment. The article can be read here! Here’s a snippet:
“The agency is looking at several measures to improve the quality of its portfolio going forward. It plans to reduce the maximum permissible seller concession from 6 percent to 3 percent because the current level exposes the FHA to excessive risk by creating incentives to inflate appraised values. The change, he said, will bring FHA into line with industry norms and even further reductions may be considered.
The minimum borrower FICO score will be raised although the final number has not yet been determined. The agency is studying whether new FICO minimums should be accompanied by changes in other underwriting criteria for lower down payment loans.
The up-front cash that a borrower will be required to bring to the table for an FHA-backed loan will also be increased to make sure that borrowers have “skin in the game.” The exact way this will be accomplished is still under study.”
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