The Department of Housing and Urban Development’s proposed budget includes a new administrative fee on government-insured mortgages to fund technology updates.
On Tuesday, HUD announced the Trump administration’s proposed fiscal-year 2018 budget for the agency and for the Federal Housing Administration.
HUD projects that there will be $228.7 billion in total FHA loan volume for fiscal-year 2018, which begins on Oct. 1 of this year and concludes on Sept. 30, 2018.
The 2018 total includes $213.9 billion in standard forward mortgages and $14.8 billion in home-equity conversion mortgages
.
Up to $400 billion in new loan guarantees is requested for FHA. The amount would be available until the end of fiscal-year 2019 in order to reduce the likelihood of program disruption under a continuing resolution or greater than expected volume.
The request for the FHA Mutual Mortgage Insurance Fund
is $160 million, more than the $130 million in 2017.
The increase of $30 million will come from a proposed new administrative support fee and will fund enhancements to FHA single family’s risk management approach, information technology system delivery and operations.
“The budget includes a $30 million administrative fee to support the modernization of FHA’s aging systems, some that are based upon the outdated COBOL programming language,” HUD said.
HUD noted that changes will be made to strengthen the HECM program.
The budget additionally seeks $500 billion in new guarantee authority for Ginnie Mae.
“This budget reflects this administration’s commitment to fiscal responsibility while continuing HUD’s core support of our most vulnerable households,” HUD Secretary Ben Carson said in a statement. “We will work very closely with Congress to support the critical work of our agency as we vigorously pursue new approaches to help work-eligible households achieve self-sufficiency.”
