A House panel unanimously approved legislation Thursday that would raise the cap on the number of adjustable-rate loans that the FHA program may insure annually.

Under the bill passed by the House Banking Committee's housing subcommittee, the number of FHA adjustable loans may not exceed 40% of the total number of FHA mortgages issued in the previous year. The current limit is 30%. However, lenders would be required to charge higher premiums on the loans that exceed the old 30% cap.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.