FHA last week announced major underwriting changes to strengthen its reserves while maintaining the agency’s critical position in the mortgage market at a time when its federally backed loans comprise about 40 percent of the market. Among the changes: an increase in the up-front mortgage insurance premium by 50 bps to 2.25 percent; a FICO credit score floor of 580 for borrowers to qualify for the agency’s 3.5 percent minimum down payment (other borrowers must put down a 10 percent minimum); and a reduction in seller concessions from 6 percent to 3 percent of the mortgage amount. Access NAR’s brief on FHA credit issues. Separately, the increase in the FHA up-front mortgage insurance premium and efforts to heighten enforcement against bad lenders are fleshed out in Mortgagee Letter 2010-02 and Mortgagee Letter 2010-03, respectively.