WASHINGTON — The Trump administration will ask for more funds to improve the Federal Housing Administration's risk management systems as part of its budget expected to be released Tuesday, according to a leaked version of the document.
The document, which has been posted online, says lenders could be charged an administrative fee to cover $30 million of the costs of the new $160 million risk management initiative, which is designed to reduce FHA delinquencies and loan losses.
"These additional resources will fund enhancements needed for administrative contract support and information technology upgrades, with a focus on expanding FHA's risk management tools to help reduce losses to the FHA mortgage insurance fund," according to the leaked budget documents.
The budget proposal also provides $47 million for housing counseling assistance. "As the economy improves and the number of first-time buyers increases, the need and demand for housing counseling will increase as well," the document says.
However, the budget document indicates the Trump administration wants Congress to pass legislation that will eliminate the Housing Trust Fund. Fannie Mae and Freddie Mac began funding the National Housing Trust Fund in 2016, but it was initially created eight years earlier as part of reform to the government-sponsored housing enterprises. The issue is likely to be part of housing finance reform that policymakers are examining.