HUD eyes 203(k) renovation changes to boost housing supply

Officials at the U.S. Department of Housing and Urban Development (HUD) are signaling changes to revive the underused Federal Housing Administration (FHA) 203(k) renovation program as a tool to tackle housing affordability and supply constraints. Matt Jones, the FHA’s deputy assistant secretary in the Office of Single Family Housing, said that a shortage of HUD-approved consultants is limiting the reach of the standard 203(k) program. “When we look at the standard program, obviously the lack of HUD consultants across the country has been a headwind for the ability to do that,” Jones said during the Mortgage Bankers Association’s Annual Convention and Expo on Tuesday in Chicago.“We’d love to look at the consultants issue and see if there’s a way we can make some improvements there while retaining the same safeguards that are provided through using a consultant,” Jones said. Jones, who was nominated by President Donald Trump for the role of FHA commissioner, said the 203(k) program currently reaches only 3,000 to 4,000 units a year, a small share of FHA’s overall single-family footprint. The 203(k) product allows a borrower to purchase or refinance a home and roll the rehabilitation ...