Speaking to the Mortgage Bankers Association conference, FHA commissioner Carol Galante said mortgage premium increases were necessary, MNI has reported. In a letter sent on Monday, the National Association of Realtors asked Galante to lower mortgage insurance premiums on FHA loans
. But Galante told the MBA conference that "now is not the time".
Galante said the FHA has other initiatives to expand access to credit, MNI reported. These include a quality assurance program to ease lender concerns about making FHA loans.
As for mortgage insurance premiums, however, Galante said they were appropriately prices to the risk the FHA was assuming, and that increasing premiums was "absolutely necessary".
Don't expect mortgage insurance premiums to fall anytime soon, according to the commissioner of the