On August 20, 2015, NAR President Chris Polychron sent a letter to the Federal Housing Administration (FHA) in support of its supplemental lender performance metric. The new metric will allow FHA to measure default rates in three credit score bands and compare them to an FHA target rate. This metric will be used in addition to existing Lender Compare Ratios, which can be found on-line at HUD’s Neighborhood Watch System. NAR hopes this new tool will encourage lenders to loosen credit overlays and ease the fear of back-end enforcement actions by FHA.
Search Washington Report