This week, HUD Secretary Shaun Donovan and FHA Commissioner Dave Stevens testified before the House Financial Services Committee regarding the health of the FHA insurance program. In his testimony, Secretary Donovan stated that HUD is currently considering additional measures to strengthen the FHA program. Possible measures include: increasing the minimum down payment requirement; increasing the minimum FICO score (which is currently set at 500); and increasing the up-front or annual insurance premiums. Secretary Donovan said that any proposed changes would be subject to public comment and Federal rulemaking. He anticipated that a proposed rule may be published in the Federal Register, at the earliest, in late January. MHI will closely monitor these developments and keep you apprised once the proposed rule is published for public comment.

During the course of the hearing, Congressman Bill Posey (R-FL) asked the HUD officials when they planned to fill the noncareer administrator position for the Manufactured Housing Program Office as provided by the Manufactured Housing Improvement Act of 2000. The HUD officials replied that they had studied this issue, and that given Administration limits on the number of political appointments and other priorities facing FHA, they did not believe that a political appointment was warranted at this time. MHI supports the appointment of a noncareer administrator and has shared its views with the Department.

Source: MHI Week in Review