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Hensarling blasts FHA premium reduction

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Mortgage Professional America | 10 Jan 2017, 02:30 PM Agree 0
Many in the real estate industry were enthusiastic about the recent announcement that the FHA would cut mortgage insurance premiums. But the chair of the House Financial Services Committee calls the move a “cynical” attempt to “play politics” with the agency
  • The Poobah | | 10 Jan 2017, 03:00 PM Agree 0
    Hensarling doesn't seem to understand how FHA, or the mortgage industry, works. That is unfortunate since he is the head of the Financial Services Committee.
  • NW-LoanOriginator | | 10 Jan 2017, 03:33 PM Agree 0
    A better move to entice any borrower to obtain an FHA Mortgage, would be to reverse the Life of Loan premium renewal on mortgages with less than 10% down. This is why borrowers are not choosing to finance FHA and opt for more reasonable Conventional PMI or decide to wait to enter the market until they have saved additional funds. The lower premium, while nice to have a lower payment, is not the limiting factor for the majority of First-time homebuyers.
  • The Greek | | 10 Jan 2017, 03:36 PM Agree 0
    The reason HUD had to be bailed out has more to do with another poorly run government agency he should look into that first and get his facts straight
  • Drain the swamp!!! | | 10 Jan 2017, 04:54 PM Agree 0
    Sorry Jeb but the monthly mortgage insurance never goes away like it used to. The government must have a boatload of money in their coffers, but we will never know how much.....
    Stop talking like a liberal or change parties!
  • Dave Christensen | | 10 Jan 2017, 08:42 PM Agree 0
    Sad that the politicians who are heading up the Committees that control our industry are so out of touch.
  • The Easterbunny | | 11 Jan 2017, 12:53 AM Agree 0
    I totally agree with you. HUD saw an opportunity to get a handout on the coattails of a giveaway the lines we have never seen before.
  • | | 11 Jan 2017, 12:57 AM Agree 0
    Hensarling, sir, until HUD was allowed to raid the cookie jar, they were completely self sufficient - on lower fees than the urgent 1.75%UMIP and. 6% MIP. Perhaps we should be looking at little more closely at how HUD is allocating the confiscitory fees they are now recieving.
  • Frank C. | | 12 Jan 2017, 02:09 AM Agree 0
    .25 reduction in the monthly insurance is not going to put anyone at risk and helps new home buyers. Don't forget the 1.75% up front funding fee hasn't moved down in years.
  • Dano | | 12 Jan 2017, 01:22 PM Agree 0
    HUD should tier the monthly premium factor according to risk(credit score) as is the case with Conventional mortgages.

  • LuckyLoans | | 19 Jan 2017, 09:02 AM Agree 0
    The life long FHA premium for mortgages < 10% down is steering many borrowers to other products and FHA is loosing a substantial revenue stream.

  • Griff | | 20 Jan 2017, 09:36 AM Agree 0
    This dude is normally wrong. Oh for the day we clean all the self serving jackasses out of Washington. HUD made it for years with very low monthly mip, and even with a low up front mip. Now if they aren't rolling in the dough with PERMANENT mip then they aren't managing money well. Or there is the thought, STOP GIVING PEOPLE LOANS WHEN THEY HAVE BAD CREDIT.
  • Alan | | 06 Feb 2017, 02:59 PM Agree 0
    From what I was told was that congress took the reserves FHA had before the crash and put the money into the general fund which later wasn't available when FHA needed the money for the bail-out. Now if this is true, then someone needs to speak up and let the people
    know the truth. If I'm wrong, then so be it. The mortgage insurance premium is still to high for the program. A monthly fee of .55
    and initial fee of 1.25% is more than enough as long as the money is put into a reserve account for ONLY one purpose, and that is
    for foreclosed (insured) homes. Congress should NEVER have the ability to move the funds for any other purpose regardless of their make believe reason.
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