Annual Performance Plan 508

12/31/2015 Complete and implement components of the new quality assurance framework, as noted
below, to provide clarity and transparency in FHA’s policies and encourage lending to
qualified borrowers across the credit spectrum.
MEASURING OUR PROGRESS
• Develop new underwriting defect taxonomy framework.
• Implement Supplemental Performance Metric
• Update lender and loan-level certifications
To help achieve this objective, HUD has established the following performance indicators.
Federal Housing Administration share of originations
This indicator measures the percentage of mortgage originations in the housing market that were made
by Federal Housing Administration.
FY12
Actual
FY13
Actual
FY14
Actual
FY14
Target
FY15
Target
FY16
Target
13.7% 14.2% 15.6% 10-15% 10-15% 10-15%
Percent of loans endorsed with credit score < 680
This indicator measures the percentage of FHA loans endorsed that have borrowers with a credit score
under 680. Credit scores help lenders to make billions of credit decisions every year. Scores range from
300 to 850. FHA’s traditional first-time borrower is targeted to be a borrower with a credit score of less
than 680. The FY 2016 target of 70 percent is considered a manageable and reasonable level of risk for
FHA to assume.
FY12
Actual
FY13
Actual
FY14
Actual
FY14
Target
FY15
Target
FY16
Target
42.6% 45.5% 56.2% 60% 6 60% 70%
Percent of loans endorsed with credit score