The Mortgage Bankers Association (MBA) announced Monday that it has convened an executive-level panel charged with making policy recommendations to Washington that will ensure the Federal Housing Administration (FHA) can continue in today’s evolving mortgage marketplace.
MBA says FHA and its charter are now more important than ever, making it essential that the federal mortgage insurer’s toolkit include the most up-to-date resources, risk management tools, and business practices in order to meet current and future challenges.
“Currently insuring upward of 30 percent of today’s loan volume, the FHA is an indispensible part of today’s mortgage market,” said Robert E. Story, Jr., CMB, chairman of the Mortgage Bankers Association. “Ensuring a strong FHA has long been a top priority for MBA. Lenders need a healthy FHA more than ever if we are going to sustain this housing recovery.”
“During the recent run up in business, the folks at FHA have done an incredible job given the limited resources at their disposal,” said Council Chairman Dan Crockett. “Our members want to help ensure that FHA can effectively manage the risks that come with the increased business the agency is seeing. As a strong advocate of FHA and its mission, MBA wants to take proactive steps to ensure the safety and soundness of the agency today and in the future.”
As DSNews.com previously reported, some housing experts contend that the FHA’s exorbitant growth will ultimately leave the agency in need of its own taxpayer bailout, though FHA Commissioner David Stevens maintains that any shortfall in the organization’s reserves can be cured without additional assistance from the government.
MBA has also retained the consulting services of the Collingwood Group to assist in the FHA-policy project. Managing directors of the Collingwood Group include former Ginnie Mae president, Joe Murin, and former FHA Commissioner, Brian Montgomery.
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