Trade groups push for changes to ROAD to Housing Act provisions

"The negotiated language contains drafting errors that would require FHA to actually decrease the loan limits to levels below those calculated by HUD staff under current law authorities. The change could constrain capital for new rental housing development and limit financing for build-for-rent and built-to-rent housing communities."

"MBA also warned that lender costs could rise if an amendment to FHA's Informed Consumer Choice Disclosure which provides a price comparison between FHA and GSE mortgage products is expanded to include the VA home loan program. Costs could also rise if servicers are required to offer foreclosure mitigation counseling for all government-backed loans once they become 30 days delinquent."

A bipartisan housing bill merges the House-passed Housing for the 21st Century Act with the Senate's ROAD to Housing Act, incorporating 18 provisions from both chambers and 26 sections from previously introduced bipartisan legislation. The package reflects Trump administration priorities and is scheduled for Senate floor consideration. However, the Mortgage Bankers Association raised significant concerns about amended provisions that could produce unintended consequences. Specifically, FHA loan limits would decrease below current law levels, constraining capital for rental housing development. Expanded disclosure requirements and foreclosure mitigation counseling mandates could increase lender costs and risk FHA's Mutual Mortgage Insurance Fund. Housing organizations also oppose language requiring institutional investors to sell newly constructed build-to-rent homes.

Read at www.housingwire.com