New standards from
the Federal Housing
Administration's insured loans program:
Minimum 580 "Fair Isaac Corporation" credit score to qualify for a minimum 3.5 percent down payment, effective early summer.
Less than 580 FICO
requires 10 percent down payment (instead of 3.5 percent under current rules) effective in early summer
premium increases from 1.75 percent of loan to 2.25. That amounts to an extra $2,000 for a $400,000 mortgage, effective in spring.
concessions fall from
6 percent to 3 percent,
effective early summer
after comment period.
Report card ranking
FHA-approved lenders' performance, on Internet
by Feb. 1.
A lender's FHA loan-
making and underwriting licenses can be terminated nationwide on the basis of its regional performances. Congressional approval required.