Raise MIPs on long mortgages; push shorter terms; restrict FHA to first-time buyers
Mandate would increase MIP above 20-year terms, favor shorter mortgages, move HECM to special risk fund, revise loan limits, and ideally restrict FHA single-family insurance to first-time buyers while abandoning affirmative obligations.
Mandate
Mandate Ch. 15 (HUD) — FHA: increase MIP for products above 20-year terms; encourage shorter-duration mortgages; move HECM to special risk fund; revise loan limits; provide flexibility for faster amortization; ideally restrict eligibility to first-time homebuyers and abandon affirmative obligation authorities across agencies/GSEs.
Undo plan
1) Rescind MIP structures that penalize standard 30-year mortgages used by working families.
2) Keep FHA open beyond first-time buyers where statute allows (refinance/underserved markets).
3) Maintain fair-lending/affirmative obligations consistent with Fair Housing Act and HERA.
4) Stress-test HECM and MMIF separately without cutting elder access arbitrarily.
5) Verify: FHA endorsement volumes by income/race; MMIF capital ratio.