FHA Commissioner Galante defends enhanced QA budget proposal.

Position:NEWS ROOM - Federal Housing Administration - Quality assurance - Brief article
 
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At the Mortgage Bankers Association's (MBA's) National Advocacy Conference on April 9, Federal Housing Administration (FHA) Commissioner Carol Galante defended a budget proposal to charge lenders an administrative fee to support an enhanced quality-assurance (QA) program.

In a speech before the roughly 400 attendees at the conference, Galante said, "This is a limited fee--up to $30 million--and we are still crafting how we are going to do that, but we assure you that it will be done in a way that's fair and transparent to lenders."

She added, "The recent economic crisis taught us, if anything, that we [FHA] need more certainty in funding. Ultimately the fee will enable us to improve our quality-assurance efforts and be better partners. FHA went from a 2 percent market share in 2008 to a 30 percent market share during the crisis, yet we had declining funding for salaries and other resources. This fee enables us to have the financial resources we need."

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