MBA Statement on Changes to FHA’s Calculation of Student Debt
|Rob Van Raaphorst|
WASHINGTON, D.C. (June 17, 2021) - Statement by MBA President and CEO Bob Broeksmit, CMB, regarding the announced changes to FHA's calculation of student debt:
"MBA applauds HUD Secretary Marcia Fudge for this change, which will help creditworthy low- and moderate-income and first-time buyers qualify for an FHA loan. It will also allow lenders to underwrite an FHA mortgage using more accurate estimates of a borrower's actual monthly student debt payments. FHA's previous rules overestimated student loan payments, denying access to FHA mortgages for many creditworthy borrowers. MBA looks forward to continuing to work with Secretary Fudge, the leadership at HUD, and other stakeholders, including members of Congress such as Congressman Gregory Meeks and House Financial Services Chairwoman Maxine Waters, to help FHA borrowers recognize the American dream of owning a home."