FHA Requests Additional Funding for Information Technology Upgrades in Fiscal Year 2019 Budget

In recent testimony before the House Committee on Appropriations, Subcommittee on Transportation, Housing and Urban Development and Related Agencies, the acting FHA commissioner, Dana Wade, outlined FHA’s budget priorities for fiscal year 2019.

The priorities for FHA single family housing programs include, among other things, an increase of $20 million for administrative expenses.  This includes updating FHA’s outdated information systems.  To offset the increased appropriations, the budget proposal requests authority to collect from FHA lenders a fee up to $25 per loan.  This fee would apply on a prospective basis and expire after four years.  The fee will enable FHA to address operational and financial risks posed by its aging information technology systems.

According to Ms. Wade’s testimony, another goal of the information technology modernization is to move to a paperless insurance process, in order to alleviate storage, maintenance, and shipping costs.

More information can be found here.