The sweeping overhaul of the Federal Housing Administration's single-family handbook offers lenders long-sought clarity on acceptable underwriting practices. But that added certainty comes at the expense of flexibility to get loans qualified, including a popular workaround for borrowers with deferred student loan debt.

"It tightens certain underwriting guidelines that were on the 'why people love FHA' list," said Alice Alvey, senior vice president at technology and outsourcing vendor Indecomm Global Services.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.