On July 15, HUD published a notice seeking public comment on three measures to restore the Mutual Mortgage Insurance Fund (the FHA capital reserve) to its statutorily mandated threshold. The proposed policy changes are to: (i) update the combination of credit and down payment requirements for new borrowers, (ii) reduce allowable seller concessions from 6% to 3%, and (iii) tighten underwriting standards for manually underwritten loans. Comments may be submitted through August 16th. HUD Release. HUD Notice.