FHA

JPMorgan Chase may jump back into a mortgage program that helps low-income Americans buy homes, mulling a return years after most banks pulled back from the business in frustration over billions of dollars in penalties.

Despite changes by the Federal Housing Administration, bankers remain reluctant to join the program for fear of legal liability. But that could change if it revamps servicing processes, experts say.

Federal Housing Finance Agency Director Mark Calabria discussed the possibility of having Fannie Mae and Freddie Mac operate under a consent order to allow the government-sponsored enterprises to be able to raise capital.

Now is not the time for the government to cut Federal Housing Administration premiums and enter new segments of the housing market.

The Federal Housing Administration's mortgage insurance fund now sits in a much better financial position, but officials say it's still not strong enough to make the premium cuts the industry wants.

The government has used the law to bring fraud claims against Federal Housing Administration lenders, but the new steps respond to criticism that minor offenders were also getting punished.

The regulator of Fannie Mae and Freddie Mac discussed steps the companies have already taken to limit their risk, as well as efforts to prevent housing market “overlap” with the FHA.

The Federal Housing Administration chief has already been serving as the acting deputy secretary of the Department of Housing and Urban Development.

The Federal Housing Administration should monitor reverse mortgage servicers more closely and track related data that would shed light on a rise in defaults, according to a Government Accountability Office report.

While many lenders lately managed their business expecting reduced volume, now they get to capitalize on extremely low mortgage rates. But today's benevolent conditions will not always be with the industry.