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On July 3, 2019, NAR sent comments to the Federal Housing Administration (FHA) in response to an advance notice of proposed rulemaking and request for public comment on the FHA Single-Family Loan Sale Program (the Program). NAR expressed concern that the prior versions of the Program led to a decrease in homeownership and an increase in single-family rental housing in many communities across the country.
In the letter addressed to FHA Commissioner Brian Montgomery, NAR urged FHA to ensure that loan sales prioritize loan purchases that lead to owner-occupied homes over absentee landlord rental houses. NAR supports arranging loan sales in small, geographically specific batches prioritizing sales to entities with demonstrated interest in a community, such as local non-profits. FHA must consider any potential conflicts of interest by purchasers that could lead to harmful outcomes. In addition FHA should work to ensure any secondary sale of a loan by an investor to another investor would prioritize final sale to owner-occupants and continue to release performance and outcome data on each pool of loan sales.