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New FHA Lender Performance Metric

June 6, 2014

On June 4, 2014, NAR submitted comments to the Federal Housing Administration (FHA) on its supplemental lender performance metric.  Performance will be measured on a lender’s default rate within three credit score bands and compared to an FHA target rate, rather than to the lender’s peers.  The new metric will be used in tandem with existing Lender Compare Ratios.  NAR hopes this new tool will encourage lenders to loosen credit overlays and ease the fear of back-end enforcement actions by FHA.

Letter to FHA

Supplemental Performance Metric

Sarah C. Young, scyoung@realtors.org, 202-383-1233
Megan Booth, mbooth@realtors.org, 202-383-1222