"The changes outlined today are obviously designed to improve FHA's financial position and ensure its long term ability to guarantee affordable mortgages for qualified home buyers, particularly first-time buyers.  The fact is that many lenders have already tightened their credit standards well in advance of this announcement in an effort to mitigate the risks posed by the current housing environment.

"Borrowers may have to pay a little more for their FHA-insured mortgages or certain borrowers will have to put more money down for their home, but these changes are necessary given the stress that the housing downturn has put on the FHA program.

"MBA supports FHA's efforts to root out those lenders who pose undue risk to the program.  We will work with FHA to ensure those efforts include fair and thorough investigations and appropriate due process for lenders who could be impacted."      

###

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:  www.mortgagebankers.org.