FHA lowers borrowers mortgage insurance premiums

That puts more money in the fund to protect taxpayers – and it puts more families in homes so they can live out the American dream.” While Brown thanked the FHA and Department of Housing and Urban Development (HUD) for the premium cut, he suggested one other change to “better achieve FHA’s mission” of serving creditworthy families: Eliminate FHA’s “life of loan” mortgage insurance requirement, which forces borrowers to maintain mortgage insurance on an FHA-insured property regardless of their equity position.

Now, we have a real opportunity to get back on track.” Following the Great Recession, FHA increased its monthly mortgage insurance premium from 55 basis points to 90 basis points; then, in April 2013, it increased them again due to post-recession concerns over credit risk and the need to strengthen FHA’s Mutual Mortgage Insurance Fund (MMIF).

Source: Florida Realtors