On January 20, 2010, FHA announced major changes to ensure its long-term financial soundness. FHA is trying to balance three fundamental objectives:

1) financial soundness of the FHA insurance fund – ensuring that its capital ratio returns above 2 percent

2) fulfilling its mission of serving borrowers not adequately served by the private sector and

3) facilitating the recovery of the housing industry and the over-all economy.

What follows is a brief description of the changes and a table with the expected timeline of the announced changes.

For more information go to the Realtor.org website.