Day 1 for President Trump: HUD suspends FHA mortgage insurance premium cut

Cutting mortgage insurance was Obama’s gift to the banks and insurance companies. Let’s face it, banks don’t make loans designed for 30 year ownership. The securitization process is designed to churn and burn. Until that is eliminated and/or Glass Steagall is reinstated insurance programs need to stay in place to protect taxpayers. We, the People bail out the defaults if there is no insurance in place and unfortunately the statistics in low income housing programs have the highest defaults. Think about it.

Justice League

And yes, the FHA insurance will go up and will hurt low income and middle class homeowners…

The Department of Housing and Urban Development announced it suspended the reduction of Mortgage Insurance Premiums, effective immediately.

HUD sent out an announcement just an hour after President Trump was sworn in on Friday, stating that the cuts have been suspended indefinitely.

The letter, found here, stated that the FHA will issue a subsequent Mortgagee Letter at a later date should this policy change.

“FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers,” the letter stated. “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.”

Right before leaving office, the Obama administration cut FHA mortgage insurance premiums, marking the…

View original post 9 more words

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s