CMLA’s Opposition to FHA Fee Makes Front Page News

CMLA Advocacy

CMLA’s opposition to the 4 basis points administrative fee proposed by HUD for all FHA insured loans that may be included in legislation to fund the Federal Government beyond December 11th was featured on the front page of this week’s National Mortgage News.  Here is a link to the story.

As previously reported, CMLA learned that HUD had persuaded the Senate Appropriations Committee to include an authorization for FHA to charge up to a 4 bps administrative fee on every FHA loan insured after a to-be-determined date. The proceeds of the fee would be used to fund technology upgrades and improvements to FHA’s IT systems. CMLA fired off a letter to the Senate and House Appropriations Committees opposing the fee. CMLA agreed that FHA’s IT systems are badly in need of upgrades, but stated that such upgrades should be met through funds appropriated for HUD, rather than through a fee charged to lenders, which lenders will pass through to FHA borrowers.

Funds to operate the Federal Government, including HUD and FHA, have been authorized by Congress until December 11th. On or before that date Congress must approve additional funding or the Federal Government, including HUD and FHA, will be required to shut down. Congress is currently discussing various funding proposals that would approve funds for certain periods of time up to and including the end of the Federal Government’s current fiscal year, which is September 30, 2015.

Glen Corso
Executive Director
Community Mortgage Lenders of America
Glen Corso
Executive Director
Community Mortgage Lenders of America

CMLACMLA’s Opposition to FHA Fee Makes Front Page News