Happy Monday! In typical beginning of week fashion, I had a topic all picked out and ready to go when breaking news hit! Well…I couldn’t miss the opportunity to share GOOD news – so here goes: Mortgage insurance premiums on FHA-backed loans will be lower by 25 basis points on loans endorsed starting January 27.
The reason cited for the reduction is the “… healthy state of HUD’s mutual mortgage insurance fund, which is the agency’s principle fund for insuring FHA mortgages”. With calculated sufficient coverage now available to meet the potential for future claims on FHA-backed loans, the savings is being passed on to consumers in an attempted effort to help working families whose home-buying goals have been hampered by affordability.
Though it’s being touted a ‘conservative reduction’, HUD will face continuing pressure from the National Association of Realtors, among many others, to take additional steps including the elimination of the ‘life of loan’ requirement.
In an era where much about the market and the impact of the pending administration is unknown, we can at least rest assured that there is a shared and public awareness of affordability, market entry issues and a strong presence in our real estate community advocating solutions.
Cheers to what we can accomplish together,
Bobbi Decker, SRES, CIPS
VP Business Development & Broker Associate, Today Sotheby’s International Realty
Bobbi Decker & Associates
Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/