HUD officials outline an action plan to stimulate FHA lending.

At a major industry gathering, Matt Jones and Joe Gormley outlined pragmatic, operational and policy levers that lenders and stakeholders can use to expand FHA single-family mortgage originations. They emphasized that increasing volume requires more than marketing—it demands product and process redesign that lowers friction for eligible borrowers while maintaining prudent credit risk management. Key themes included modernizing underwriting through automation and data integration, reexamining overlays and pricing frameworks that deter originations, and expanding distribution through nontraditional channels and community partnerships. Speakers framed these changes as complementary: technology can accelerate decisions and reduce costs, while product adjustments and targeted outreach address affordability and accessibility gaps in underserved markets.

Jones and Gormley also highlighted the implementation challenges and recommended a phased, evidence-driven approach to scale successful pilots. They urged coordination among lenders, servicers, investors and federal housing agencies to align operational standards, appraisal practices and investor appetite so improved origination flows translate into sustainable pipelines. Attention to fraud controls, staff training and servicing capacity was presented as essential to preserving asset quality as volumes grow. The overall message was that modest, targeted interventions across underwriting, product, distribution and policy engagement can collectively move the needle on FHA single-family originations without compromising credit discipline.

– Modernized underwriting: Use automation and alternative data to speed decisions and reduce cost-to-close.
– Product and pricing tweaks: Adjust overlays and risk-based pricing to make FHA more accessible while preserving risk controls.
– Distribution expansion: Partner with community organizations and nontraditional channels to reach eligible borrowers.
– Appraisal and property standards: Streamline appraisal processes and clarity on property acceptability to cut appraisal-related delays.
– Interagency and investor coordination: Align lender practices with federal agencies and investors to ensure market capacity for higher volumes.
– Operational readiness: Invest in training, fraud detection and servicing capacity to support increased origination flow.
– Pilot-and-scale approach: Test targeted changes, measure outcomes, and scale what demonstrably improves originations and performance.

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