Yay! Workin' for the people already, just like he said a few hours ago.An hour after Donald Trump assumed the presidency Friday, his administration indefinitely suspended a pending rate cut for mortgage insurance required for FHA-backed mortgages, which are popular with first-time home buyers and those with poor credit.
The move by the Department of Housing and Urban Development — one of the first acts of Trump’s administration — reversed a policy announced in the waning days of the Obama presidency that would have trimmed insurance premiums for typical borrowers by hundreds of dollars a year.
LA Times
In cutting the insurance premium, the Obama administration had argued that the FHA’s finances had vastly improved since it received its first-ever bailout in 2013 to cover potential losses on the huge volume of low-down-payment mortgages it insured from 2007 to 2009.
The administration noted that the agency’s Mutual Mortgage Insurance Fund’s capital reserve ratio exceeded requirements for the second year in a row.
“With sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” former HUD Secretary Julian Castro said in announcing the cut.
The suspension of that decision will be a disappointment to home buyers currently out shopping, especially on top of the rise in mortgage interest rates following the November election.
Aaaaand..Bingo!
...but hey, do what you want...you will anyway.
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