loading...

Trump Administration Suspends Mortgage Insurance Rate Relief

  • January 23rd 2017

by Nena Perry-Brown

✉️ Want to forward this article? Click here.

On Friday, one hour after Donald Trump was inaugurated president, one of his administration’s first acts was to halt an order intended to keep mortgage insurance premiums down.

The Department of Housing and Urban Development (HUD) issued an emergency order indefinitely suspending an initiative President Obama recently passed to reduce the Federal Housing Administration (FHA)’s annual mortgage insurance rates, the second time Obama reduced premiums in a two-year span.

The new administration stated that Mortagee Letter 2017-01, which was supposed to go into effect at the end of this week, bears further study before any decisions on mortgage insurance premiums are made going forward. As it was passed earlier this month, the Letter would have reduced federal mortgage insurance on newly-issued loans by 0.25 percent, potentially reducing annual premiums by $446 on average.

This decision aligns with HUD secretary nominee Ben Carson’s stance that government subsidies may not be necessary to create or preserve affordable housing.

See other articles related to: fha, fha mortgage insurance, hud

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/new_administration_suspends_mortgage_insurance_rate_relief/12071.

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!