The Community Home Lenders of America (CHLA) concluded that the Federal Housing Administration (FHA) could use direct payments to lenders as the primary tool in a forthcoming small-dollar mortgage pilot program, arguing it is the only approach likely to meaningfully increase originations of mortgages below $100,000.

In a comment letter dated July 16 and addressed to acting FHA Commissioner Joseph Gormley, the trade group said lenders generally lose money originating small-balance mortgages because fixed origination costs outweigh the revenue generated from lower loan amounts.

The suggestions address the implementation of Section 105 details ⇒

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