fha

Forgotten Again

How quickly they forget!

In its first executive action last Friday, within the hour after Trump took the oath of office, his administration suspended the implementation of a rule that would have reduced the cost of mortgage insurance for FHA-backed loans. The backing helps first-time buyers, people with poor credit, and those who lack funds for a 20% down payment obtain private loans.

About 16% of new mortgages are FHA insured. The premium rate would have been reduced from 0.85% to 0.60%, saving borrowers about $29 monthly on a $200,000 mortgage.

FHA Drops a $1.7 Billion Bail Out Bombshell on Friday Night

The FHA is getting a $1.7 billion bail out from the Treasury.  Seems those reverse mortgages have managed to accrue $5 billion in losses.  The news was disclosed in a letter to Congress, not even a press release.  Most of us know the drill.  Have to issue news but want no one to read it?  Release it at 5pm on a Friday.