FHA Changes Offer Prudent Course Without Negative Impact On Minority Borrowers

We believe that the FHA has a difficult path to navigate, but we think they have successfully realized three core objectives simultaneously:

·      First, to reduce the financial exposure of  the FHA fund through tighter credit rules;
·      Second, to sustain the flow of mortgage credit sufficient to make sure the housing market doesn’t go into a renewed negative spin;
·     And third, to avoid “balancing the FHA books” on the backs of credit worthy working families.
“Notably, FHA was created in 1934 to heal the U.S. housing market during the Great Depression and for decades – due to a stable housing market – it has turned a  profit for taxpayers. Today, it is more critical than ever that FHA remain a strong gateway for responsibly underwritten credit in the communities that we serve, while also ensuring a healthy and sustainable mortgage marketplace beneficial to all. Transparency and enforcement will help to realize this.  NCRC will continue to review the new rule and provide additional information in the coming days.”


The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America’s working families.

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