The Department of Housing and Urban Development (HUD) announced a reduction in Mortgage Premium last week. However, Trump administrations do not feel that the US Citizen really need this benefit. This reduction has been suspended indefinitely.
“FHA is committed to ensuring its mortgage insurance programs remain viable and effective in the long term for all parties involved, especially our taxpayers,” the HUD statement said. “As such, more analysis and research are deemed necessary to assess future adjustments while also considering potential market conditions in an ever-changing global economy that could impact our efforts.”
The HUD statement added that “FHA will issue a subsequent Mortgagee Letter at a later date should this policy change.”
Mortgage Banking Association is not that happy with the move. The statement was released by David H. Stevens, President and CEO Mortgage Bankers Association (MBA) and the FHA Commissioner in the first term of the Obama Administration, following the news of the premium suspension. “We recognize the Administration’s need to examine the overall health of the insurance program and weigh that against the benefits of lowering mortgage insurance premiums,” he said. “Given that lenders have already started preparing for the MIP decrease, it is important that any new policy is implemented in a way that minimizes disruption for borrowers and lenders. MBA looks forward to working with the new Administration to ensure the long term stability of the FHA program, creating an environment that provides clarity in regulations for lenders while at the same time promoting access to credit and protecting consumers.”