Mortgage

FHA to weigh mortgage insurance premium cut after 1Q

FHA to weigh mortgage insurance premium cut after 1Q
Written by Publishing Team

The Federal Housing Administration plans to look into the question of whether it should make any change to mortgage insurance premiums after March, according to an official with the Department of Housing and Urban Development.

When asked if the mortgage insurance fund’s exceptional health could warrant a premium cut during a news conference about the Biden administration’s achievements, an official noted that the answer could hinge on first-quarter loan performance and the economy.

“We are pleased with the health of the MMI fund, and at the same time we want to be vigilant,” said Lopa Kolluri, HUD’s Senior Deputy Assistant Secretary of Housing and Federal Housing Administration.

The mortgage industry has long sought FHA reductions that could make homes more affordable for novice buyers with limited incomes. Such a move would support the Biden administration’s goals for affordable housing, but it would limit the agency’s claims-paying resources.

leather Refusal to reduce insurance premiums Last fall when I reviewed the last fiscal year ended September 30th. Kolluri noted that it’s an option not entirely off the table, but added that HUD wants to keep an eye on what happens with inflation, home price estimation And defaulting borrowers in patience.

While the number of borrowers whose payments have been temporarily held due to the pandemic has fallen very low, their share of FHA loans is relatively high.

“The results of…these are unknown,” Colouri said. “I think by the end of the first quarter we will have a better indication of what the borrower’s results look like, and at that point, we will be able to evaluate all options in terms of changes in the premium.”

.

About the author

Publishing Team

Leave a Comment