The Federal Housing Administration finalized a new rule Friday that makes it tougher to qualify for loans insured by the agency. To qualify for mortgage insurance, lenders must offer up evidence that their seriously delinquent and claim rates remain at or below 150 percent of aggregate rates in home states. The rule authorizes more extensive examination for lenders in order to ensure that they are able to meet the FHA├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós new qualifications. It requires that certain lenders indemnify HUD in claims over loans. The move arrives amid criticism that diminishing capital for the FHA may necessitate its bailout.

Make room for another departure from the federal housing community. On Friday the Federal Home Loan Bank of Cincinnati announced that president and CEO David Hehman planned to retire, concluding a career he started with the institution in 1977. The Federal Home Loan Bank├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós board of directors selected Andrew Howell, currently EVP and COO for the financial institution, to succeed the outgoing president. Hehman first arrived at the Federal Home Loan Bank in 1977, when he left his position as assistant professor of economics and finance at Xavier University.

Existing-home sales climbed by 5 percent in December as more consumers felt the confidence needed to move forward with home purchases. The National Association of Realtors reported the figures Friday, showing that total existing-home sales ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô those sales in the process of closing ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô moved forward to 4.61 million in December, up from 4.39 million in November. The trade group said that existing-home sales arrived at 4.26 million, reflecting a 1.7 percent rise from 4.19 million last year. All-cash sales reflected about 31 percent of purchases in December, up from 28 percent in November.

A survey released Wednesday found that more mortgage originators fear the effects of legislation for their industry than from any other challenge. Releasing the Second Annual Survey of Originator Opinions, mortgage industry recruiting firm Hammerhouse LLC polled about 400 active loan originators across the country on issues that ranged from regulation to technology. Asked which challenge felt the greatest for loan originators in 2012, 51 percent said oversight and legislation could crimp the industry.

Housing starts declined by 4.1 percent on a seasonally adjusted basis in December, even while figures for single-family homes climbed year-over-year, offering signs that it may unseat multifamily construction after several months. Single-family housing starts went up 4.4 percent at a seasonally adjusted rate of 470,000, with the December rate for building construction with five units or more hovering around 147,000. Building permits crept forward to an annual rate of 679,000, a 7.8-percent increase year-over-year and 0.1-percent annual increase month-over-month.

Interest rates for mortgage loans plunged to new lows Thursday, as debt crises in Europe continued to weigh heavily on investors. Finance Web site Bankrate.com and mortgage company Freddie Mac released separate surveys signaling all-time lows for mortgage rates. For Freddie, the 30-year fixed-rate loan fell to 3.88 percent, down from 3.89 percent last week. Bankrate.com revealed rates for the 30-year mortgage staying the same at 4.18 percent. The 15-year fixed-rate mortgage went up a percentage point for Freddie, reaching 3.17 percent, up from 3.16 percent last week.

Confidence among homebuilders for new single-family homes climbed for the fourth straight month in January, as a pickup in housing starts and sales continued seemingly unabated. The National Association of Home Builders reported the figures Wednesday in a Housing Market Index it released in collaboration with Wells Fargo. The results: Homebuilder confidence escalated to the highest level seen since June 2007, ascending by four points to crest at 25 on the index. Prospective buyer traffic also posted the highest increases since June 2007.

Mortgage application volume shot up 23.1 percent on a seasonally adjusted basis, largely on a refinancing surge that eclipsed averages year-over-year as investors frittered about Europe. The Mortgage Bankers Association reported the figures in its latest Weekly Mortgage Applications Survey. The trade group├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Market Composite Index, a measure of application volume, climbed 38.1 percent on a seasonally unadjusted basis from the week before. The Refinance Index accordingly reflected a 26.4-percent increase from the week before to the highest level seen since August last year.

Witnesses testifying before the House Financial Services Committee Wednesday warned lawmakers that the controversial Volcker Rule could tighten bank liquidity and make U.S. financial institutions less competitive with banks overseas. Once finalized by regulators, the rule ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô unless modified or repealed by lawmakers ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô will enact a provision under the Dodd-Frank Act that prohibits U.S. banks from engaging in short-term proprietary trading practices. Douglas Elliott, a fellow with the Brookings Institution, called for an outright repeal of the Volcker Rule.

Earlier Tuesday the FDIC went forward with a notice of proposed rulemaking in the Federal Register that calls for annual stress tests to determine capital adequacy for banks. The notice built on the Basel Accords, which the Basel Committee on Banking Supervision revisited with help from a consortium of central bankers over 2010 and 2011. Basel III is the latest by BCBS to require stress tests for systemically important financial institutions, which include Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, and several other U.S. lenders.