) mortgage insurance premium cut, Five-Star Lender Freedom Mortgage Corp
. announced it is hiring as many as 500 new employees to accommodate anticipated volume growth.
U.S. President Barack Obama's announcement of a .50% reduction
in the FHA annual mortgage insurance premium means that borrowers will now pay .85% rather than 1.35% of the loan amount to insure lenders against loss when making FHA loans
Freedom Mortgage said many more borrowers will now qualify for FHA loans and others are expected to be motivated to refinance existing loans in order to obtain lower mortgage payments. With declining interest rates as well as the lower mortgage insurance premiums on FHA loans, some estimate as many as three million current FHA borrowers will be moved to refinance following the president's action.
"This reduction in MIP rate is a very significant development for housing and the economy," Freedom Mortgage President and CEO Stanley Middleman, said. "New home buyers inject life into the economy and create jobs, and lower monthly payments from refinancing result in greater spendable income in every sector. As we expect many Americans to take advantage of the MIP rate reduction we intend to be ready for a surge in volume. We may end up hiring more than 500 new people to accommodate our growth nationwide."
Tomorrow the company is hosting job fairs for prospective loan officers in Jacksonville, Florida, and in Mount Laurel, New Jersey, from 4 p.m. to 7 p.m. and on Thursday in Mount Laurel from 9 a.m. to noon. Applicants for the job fairs should register by emailing [email protected]
In preparation for what it hopes to be a flood of new applications from the Federal Housing Administration (