FHA Issues RFI Regarding Small Mortgage Lending

On October 4, 2022, the FHA published a Request for Information (RFI) to “solicit information regarding barriers to originating small mortgage lending in the FHA program and obtain feedback on ways to improve FHA policies and programs that support affordable homeownership opportunities in underserved markets with lower housing prices.” 

Concurrently with the release of the RFI, HUD issued a report assessing the barriers to the origination of small mortgages and the impact on affordable homeownership for those interested in lower-priced homes.

Responses to the RFI will help further goals established in HUD’s 2022-2026 Strategic Plan, including the strategic goal to support underserved communities by advancing housing justice and by proactively strengthening and protecting vulnerable and underserved communities.  The RFI outlines specific questions to which interested parties may respond, but also welcomes all comments relevant to expanding small mortgage lending in the FHA mortgage insurance program. 

Comments are due December 5, 2022.