{"id":50466,"date":"2026-05-19T00:20:26","date_gmt":"2026-05-18T21:20:26","guid":{"rendered":"https:\/\/mk.gen.tr\/fha-turns-attention-to-the-flipping-rule-and-avms\/"},"modified":"2026-05-19T00:20:26","modified_gmt":"2026-05-18T21:20:26","slug":"fha-turns-attention-to-the-flipping-rule-and-avms","status":"publish","type":"post","link":"https:\/\/mk.gen.tr\/tr\/fha-turns-attention-to-the-flipping-rule-and-avms\/","title":{"rendered":"FHA turns attention to the \u2018flipping rule\u2019 and AVMs"},"content":{"rendered":"

The Federal Housing Administration<\/strong> (FHA<\/a>) would like to review its anti-flipping rule and reforms to automated valuation models (AVMs), according to Matt Jones, deputy assistant secretary for the FHA\u2019s Office of Single-Family Housing.<\/p>\n

\u201cWe think our AVM<\/a>, our valuation technology, has improved significantly since that rule was put in place a couple decades ago,\u201d Jones said. \u201cWe\u2019d like to take a look at getting rid of that in its entirety. Obviously, that\u2019s a rulemaking process, so it takes a fair runway to get there, but we think that\u2019ll be very positive for housing supply if we can get there.\u201d<\/p>\n

Jones, who spoke Monday during the Mortgage Bankers Association<\/strong> (MBA<\/a>)\u2019s Secondary and Capital Markets conference in New York, said that the FHA is the only program that still enforces the anti-flipping<\/a> rule, which prohibits buyers from using an FHA-insured loan to purchase a home that the seller has owned for 90 days or less. \u201cWe\u2019d love to take a look at\u201d the rule, he said.<\/p>\n

According to Jones, these changes would help boost housing supply. The same goal was behind recent prohibitions for non-residents<\/a> participating in the FHA program \u2014 a move that follows a fivefold increase in demand from these borrowers during the Biden administration, he added.<\/p>\n

Another recent change occurred a few weeks ago when the FHA abandoned the International Energy Conservation Code<\/a>, which would have added between $20,000 and $30,000 in construction costs per home, Jones said.<\/p>\n

\u201cWhen we\u2019re talking about how can we help with housing supply, a lot of it starts with eliminating things that actively had harmed the ability to develop and build housing supply,\u201d Jones said.<\/p>\n

Overall, Jones stated that the FHA is generally on track with last year\u2019s endorsement levels.<\/p>\n

On the affordability side, he said the FHA has another round of rescissions coming to address the cost structure of originations, specifically under a recent executive order from President Donald Trump<\/a>. Topics under review include appraisal standards<\/a>, wet signature requirements, e-signatures and post-closing quality control (QC) evaluations.<\/p>\n

Loss mitigation and delinquencies<\/h2>\n

According to Jones, the COVID-19 pandemic brought an urgent need to overhaul the agency\u2019s loss-mitigation program, creating a \u201cband-aid problem\u201d that was never sunset: an increased use of rolling 90-day partial claims.<\/p>\n

The FHA\u2019s December Mutual Mortgage Insurance report<\/a> showed that 41% of new partial claims were given to borrowers who had already received three or more partial claims. In total, 36,000 borrowers have been in and out of serious delinquency<\/a>, which exacerbates housing supply problems and servicing costs, he added.<\/p>\n

In October, the FHA implemented a rule stating that borrowers get one more opportunity for a home retention option. After that, they must be evaluated and prove they are capable of making the revised payments through a trial payment plan to qualify for another option.<\/p>\n

\u201cBecause there is a lag between when they\u2019re evaluated and when they ultimately would receive a home retention option, there\u2019s that multi-month lag in the data where they\u2019re reporting still as seriously delinquent; according to what we\u2019ve seen, almost the entire amount of that increase in serious delinquency is attributable to that policy change,\u201d Jones said. <\/p>\n

\u201cWe are starting to see, though, and we think this is a positive indicator, the 30 (days) and 60 (days delinquency rates) are starting to improve.\u201d<\/p>\n

The policy change, according to Jones, saves taxpayers $2 billion by driving a change in borrower behavior.<\/p>","protected":false},"excerpt":{"rendered":"

The Federal Housing Administration (FHA) would like to review its anti-flipping rule and reforms to automated valuation models (AVMs), according to Matt Jones, deputy assistant secretary for the FHA\u2019s Office of Single-Family Housing. \u201cWe think our AVM, our valuation technology, has improved significantly since that rule was put in place a couple decades ago,\u201d Jones…<\/p>","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts\/50466"}],"collection":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/comments?post=50466"}],"version-history":[{"count":0,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts\/50466\/revisions"}],"wp:attachment":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/media?parent=50466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/categories?post=50466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/tags?post=50466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}