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FHA-HFA Multifamily Loan Risk-Sharing Program FAQ

Published on January 5, 2018
FHA-HFA Multifamily Loan Risk-Sharing Program FAQ

Congress established the Federal Housing Agency (FHA) – Housing Finance Agency (HFA) Multifamily Risk-Sharing program in 1992 to increase and speed up FHA’s multifamily mortgage production. The FHA-HFA Risk-Sharing program allows state HFAs that meet rigorous financial standards to underwrite FHA multifamily loans in return for sharing the risk of losses on those loans.

The FHA-HFA Multifamily Loan Risk-Sharing Program FAQ (last updated December 12, 2018) covers the following:

  • What is the FHA-HFA Risk-Sharing program?
  • What Has the Program Accomplished?
  • What is the FFB Initiative?
  • Why does the law currently prohibit Ginnie Mae from securitizing Risk-Sharing loans?
  • Why should Congress allow Ginnie Mae to securitize FHA-HFA Risk-Sharing loans?
  • Does Ginnie Mae securitize other multifamily loans?
  • Will allowing Ginnie Mae to securitize FHA-HFA Risk-Sharing loans increase federal government spending?
  • What is the history of proposals to allow Ginnie Mae to securitize FHA-HFA Risk-Sharing loans?
  • Would Ginnie Mae securitization of FHA-HFA Risk-Sharing loans expand Ginnie Mae’s authority and involvement in affordable housing or increase risk to the federal government?
  • Should the Ginnie Mae FHA-HFA Risk-Sharing loan securitization authority be temporary?
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