The Federal Housing Administration (FHA) has canceled plans to enact new credit restrictions that were scheduled to take effect July 1.
The Washington Post reports that the FHA's rescinded plan would have required borrowers with collections or disputed unpaid bills of $1,000 or more to resolve their outstanding bills before their home loans could be closed.
Charles Coulter, deputy assistant secretary for the U.S. Department of Housing and Urban Development, says the FHA's reversal on its planned policy change was done in order to ‘find a balanced yet flexible approach to promote access to affordable credit while protecting the mortgage insurance fund.’