At a hearing Wednesday morning with the U.S. House of Representatives Financial Services Committee, HUD Secretary Julian Castro defended the FHA’s decision to reduce mortgage insurance fees.
In an effort to expand credit, government officials are discussing easing up on the penalties given to lenders that make mistakes on mortgage applications.
While reverse mortgages are only available to a select group of consumers, the product still makes up a large portion of complaints received by the Consumer Financial Protection Bureau.
The FHA’s new budget reveals that the Obama administration is starting to see reverse mortgages as viable again.
Mel Watt said the regulator is considering reducing the balances of some homeowners’ mortgages, but the effort could prove to be challenging.
Approximately one-third of borrowers are not sure of their interest rate and many could still save hundreds a month through refinancing.