My MBA Career: Opposition to FHA Program Extension

Last Updated on March 3, 2024 by Robert C. Hoopes

The Mortgage Bankers Association (MBA) has come out in strong opposition to the extension of the Federal Housing Administration (FHA) and Federal Financing Bank (FFB) Risk Sharing program. MBA CEO Bob Broeksmit recently expressed concerns about the extension, citing that it is unnecessary and creates unfair competition with the private sector.

Broeksmit highlighted the stringent regulations of the current HUD MAP program, which includes a nearly 1,000 page underwriting guidebook, Davis-Bacon split-wage requirements, and strict environmental standards. These regulations are in place to ensure the safety and quality of housing options for vulnerable populations.

Participants in the FFB program, however, are not subjected to the same rigorous criteria as HUD MAP lenders. This discrepancy in regulations has raised concerns within the MBA about potentially compromising the safety and quality of housing options for vulnerable populations.

Broeksmit emphasized the importance of maintaining high standards in the housing market, stating that the extension of the FHA and FFB program could create an uneven playing field for private sector lenders. He urged policymakers to carefully consider the impact of extending the program and to prioritize the safety and well-being of those in need of affordable housing options.

The MBA’s stance on the extension of the FHA and FFB program underscores the organization’s commitment to upholding industry standards and ensuring that all individuals have access to safe and affordable housing options.