During spring training every year, professional baseball clubs take a really long and hard look at their teams to see if they have what it takes to be successful. Just as managers must make candid assessments about playing personnel, owners have to assess whether the team has the right components to he a profitable franchise over the long term. By now, you are probably wondering what any of this has to do with mortgage banking. It turns out this is good analogy for the changes under way at the Federal Housing Administration (FHA). FHA today is in the process of taking stock of the long-term viability of its franchise. On Jan 20, 2010, FHA proposed a series of legislative, regulatory and operational changes. The legislative changes that require congressional approval include: 1. raising the statutory cap on the annual mortgage insurance premium, 2. applying the indemnification provisions to all Direct Endorsement lenders, and 3. giving FHA the authority to withdraw a lender's nationwide approval on the basis of poor performance of one or more branches.