FHA to Cut Mortgage Insurance Premiums
The Federal Housing Administration (FHA) will reduce annual mortgage insurance premiums from 0.85% to 0.55%. The change is expected to reduce the fee paid by borrowers by $800 for a typical loan. The Biden Administration called the action "an important step in making homeownership more attainable."
Regulators Take Issue with USPAP's Fourth Exposure Draft
Federal regulators expressed concern that a proposed update to the Uniform Standards of Professional Appraisal Practice (USPAP) contains substituted language about discrimination. In a letter to the Appraisal Foundation's Appraisal Standards Board, the regulators said the proposed update seeks to differentiate between unlawful discrimination and a concept of "unethical discrimination" which is not clearly defined in current law or practice.
Read the Letter
Bill Introduced to Encourage De Novo Bank Formation
The "Promoting Access to Capital in Underbanked Communities Act" (H.R. 758) introduced by Rep. Andy Barr (R-Ky.) would provide a three-year phase-in period for new banks to meet federal capital standards. It also includes provisions to encourage and maintain de novo banking. In a letter to the chairman and ranking member of the House Financial Services Committee in support, the American Bankers Association (ABA) said, "By facilitating the formation of new banks in urban and rural areas, this legislation expands banking access for both individuals and small- and medium-sized businesses."