MBA Opposes FFB Risk Sharing Program Extension; Calls On HUD To Address High Fees
MBA President and CEO Bob Broeksmit, CMB, released the following statement on the Biden administration’s housing announcements today, which include extending indefinitely the Federal Housing Administration (FHA) and Federal Financing Bank (FFB) Risk Sharing program:
“While we agree with the Administration that there is a desperate need for more affordable housing supply, extending the FHA-FFB Risk Sharing program is unnecessary, as it undermines the successful FHA Multifamily Accelerated Processing (MAP) program and creates unfair competition with the private sector. HUD MAP lenders currently follow a nearly 1,000-page underwriting and requirement guidebook, must adhere to Davis-Bacon split-wage requirements, and must comply with stringent environmental standards. FFB program participants do not follow the same requirements, which could lead to less safe housing choices for those most in need.
“Instead, the Administration should direct HUD to take meaningful action to make its existing programs more attractive and useful for participating lenders and borrowers. Reducing or eliminating more than 20 unnecessary and duplicative fees, increasing statutory loan limits, lowering multifamily mortgage insurance premiums and excessive escrow account requirements, and increasing the wind/named storm insurance deductibles would have more impact in developing more affordable rental housing.
“We will further analyze the initiatives announced today and will continue to call on the Administration, Congress, and industry stakeholders to work together on more affordable and effective lending programs.”
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