On August 20, 2015 NAR sent a letter to Edward Golding, HUD's Principal Deputy Assistant Secretary for Housing. The letter commends FHA on the release of the Supplemental Performance Metric. This new Performance Metric will give FHA an additional tool to assess lenders with excessive default and claim rates. Currently lenders are only measured against their peers. The new metric allows FHA to measure these lenders against an acceptable FHA risk tolerance rate in addition to the traditional measure of lender to lender compare ratios. NAR supports FHA’s efforts to provide an additional metric to evaluate lenders in addition to the Lender Compare Ratio but believes that the benefit of the Supplemental Performance Metric needs to be more definitive.
Download Letter Here
NAR Letter to HUD Regarding the Agency's Supplemental Performance Metric
Issue Date: August 20, 2015
On August 20, 2015 NAR sent a letter to Edward Golding, HUD's Principal Deputy Assistant Secretary for Housing. The letter commends FHA on the release of the Supplemental Performance Metric. This new Performance Metric will give FHA an additional tool to assess lenders with excessive default and claim rates. Currently lenders are only measured against their peers. The new metric allows FHA to measure these lenders against an acceptable FHA risk tolerance rate in addition to the traditional measure of lender to lender compare ratios. NAR supports FHA’s efforts to provide an additional metric to evaluate lenders in addition to the Lender Compare Ratio but believes that the benefit of the Supplemental Performance Metric needs to be more definitive.
Download Letter Here