indexIt’s been less than a month since the previous HUD Secretary Julian Castro announced a reduction in the amount of Mortgage Insurance home owners would have to pay on FHA loans. The new lower rates wound have applied to all FHA loans after January 27th of this year and could have saved home owners about $500 a year with the current rates.

Ben CarsonGreat news from the government, well ‘just kidding’. At his confirmation hearing, the new Secretary of Housing and Urban Development, Ben Carson stated “Certainly, if confirmed, I am going to work with the FHA administrator and other financial experts to really examine that policy.” So it would seem he is against the new policies.

 

A press release on Jan 19th from the Mortgage Bankers Association stated “Based on recent testimony and political pushback, we believe there is a strong chance the most recent MIP reduction…  may be one of the rollback actions taken soon after President Trump takes office.”

How will the new administration effect mortgage policies moving forward? We’ll have to wait and see, but as of now it does not look like the FHA MIP reduction is in the works.

 

 

Sources: Mortgage News Daily