As homeowners continue to grapple with adjustable-rate mortgages and skyrocketing monthly payments, The National Association of Mortgage Processors (NAMP) predicts the Federal Housing Administration, or FHA loan, will replace subprime mortgages in the marketplace.

In a press statement the agency said, “As the government’s largest mortgage program, the Federal Housing Administration loan has been basically a low-down payment source for first-time home buyers with issues with their credit, but who could fully document their income and assets.”
NAMP said recent changes to FHA loans could also refuel their re-emergence as solutions for subprime borrowers. The agency added that, “According to FHA Commissioner Brian D. Montgomery, FHA has shifted from its historical emphasis on the repair of minor property deficiencies and now only requires repairs for those property conditions that rise above the level of cosmetic defects, minor defects, or normal wear and tear.”
With FHA loans expected to re-emerge, NAMP has partnered with FHA Training University – a nationwide FHA training platform – so they can offer online FHA training classes nationwide.