Mortgagee Letter 2017-07 Affected Topics This guidance affects Appendix 1.0 -Mortgage Insurance Premiums of the FHA Single Family Housing Policy Handbook 4000.1, and reinstates the Appendix in affect prior to the issuance of the update communicated in ML 2017-01. Background FHA is committed to ensuring its mortgage insurance programs remains
Having mortgage insurance reduces the risk to the lender allowing them to reduce their requirements helping more people to qualify. There are two kinds of premium mortgage insurance you will be required to pay when using an FHA-insured mortgage. upfront mortgage insurance, and annual mortgage insurance. Upfront FHA Mortgage Insurance
WASHINGTON (Jan. 9, 2017) – Lower costs are coming for homebuyers seeking a federal housing administration -insured mortgage. fha announced today that they are cutting annual premiums for mortgage.
· The U.S. Department of Housing and Urban Development’s last action under the Obama Administration was cutting federal housing administration mortgage insurance premiums by 25 basis points. However, HUD sent out an announcement just an hour after President Trump was sworn in, stating that the cuts were suspended indefinitely.
Obama’s MIP Reduction for 2017 Reversed by Incoming Trump Administration. Further Estimated Reduction of $500 Suspended. On January 9, 2017, the Federal Housing Administration operating under the Obama administration announced a further reduction in the FHA loan annual mortgage insurance premiums (MIP) for new loans.
But for the past three years, popularity has waned a bit for the mortgages since FHA insurance premiums have increased. In June 2013, the government made changes in an effort to reduce the liability.
Federal Housing Administration officials announced today that they will reduce the annual mortgage insurance premium for FHA loans by a quarter of a percent. The lower MIP rate will apply to most borrowers who use the FHA program to buy a home in 2017, and will save them an average of $500 per year.
The National Association of Realtors believes that the Trump administration’s recent decision to suspend a reduction. but in a letter addressed to Ben Carson, Trump’s choice to lead HUD, NAR said.
· FHA predicts that the reduction will lower the cost of housing for approximately 1 million borrowers who are expected to use FHA-insured financing to either buy a home or refinance a mortgage over.