That question has become pertinent in light of HUD's recent report on its Mutual Mortgage Insurance fund, which at the end of September had a capital ratio of 8.03% — an increase of almost two percentage points.
Should the FHA lower the fees it charges borrowers?
That question has become pertinent in light of HUD's recent report on its Mutual Mortgage Insurance fund, which at the end of September had a capital ratio of 8.03% — an increase of almost two percentage points.
"To explain the agency's reasoning in light of the fund's stellar performance, HUD officials laid out uncertainties that could imperil it. There are still 660,000 seriously delinquent borrowers in the FHA portfolio, and the report raised the possibility that foreclosures could cause home prices to drop. Rising mortgage rates could also make loss mitigation options more expensive.
"But several industry groups who represent lenders think now is the time for HUD to at least consider lowering its mortgage insurance premiums."
Mark Jones, co-founder and CEO at Amerifirst Home Mortgage and vice chairman of the Mortgage Bankers Association, recently addressed this topic in his HW+ member spotlight, saying that if he could change one piece of housing regulation, he would end life-of-loan insurance coverage.
Read the whole story, including industry leaders' response,here.
Soon after HUD released its Mutual Mortgage Insurance fund report, housing finance and policy experts opined on whether the FHA should lower the fees it charges borrowers.
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