FHA draws more interest amid crunch

NEW YORK – March 13, 2008 – More mortgage lenders and brokers are trying to obtain Federal Housing Administration licenses to issue FHA loans, as borrowers show more interest in products backed by the agency. The FHA has received 287,000 refinancing applications and has closed on 117,000 mortgages since September.

Brokers seeking FHA licenses are now lobbying Congress for changes to the net-worth requirement of $63,000, with 20 percent in cash, and the annual audit requirement, which can cost as much as $10,000, because they believe the rules place too much of a burden on small firms.

However, the FHA and the Mortgage Bankers Association oppose reducing or dropping the requirements.

Source: Wall Street Journal (03/12/08) P. B6; Timiraos, Nick

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