Trump's first action? FU¢KING the FHA mortgage rates

[☑︎#VoteDemocrat]

Trump Administration Overturns Obama’s FHA Mortgage-Fee Cut
by
Joe Light
January 20, 2017, 1:24 PM EST January 20, 2017, 1:56 PM EST

• Obama sought to reduce fees by a quarter percentage point
• Loan program is popular among first-time home buyers

President Donald Trump, First Lady Melania Trump, former President Barack Obama and former First Lady Michelle Obama walk together following the inauguration, on Capitol Hill in Washington, D.C. on Jan. 20.

Photographer: Pool/Getty Images
The Trump administration overturned a mortgage-fee cut under a government program that’s popular with first-time home buyers and low-income borrowers.

The Department of Housing and Urban Development on Friday said the agency is canceling a reduction announced last week while President Barack Obama was still in office. The Federal Housing Administration had planned to cut its annual fee for most borrowers by a quarter of a percentage point to 0.60 percent, effective on Jan. 27.

Republicans have argued in the past that reductions put taxpayers at risk by lowering the funds the FHA has to deal with mortgage defaults. A letter from HUD to lenders and others in the real-estate industry, sent after Donald Trump assumed the presidency on Friday, didn’t give an explanation of the decision. HUD spokesman Brian Sullivan said the agency would issue a statement soon.

Ben Carson, Trump’s nominee to lead HUD, FHA’s parent agency, said at his confirmation hearing last week that he wasn’t consulted before the fee reduction and was disappointed it was announced in Obama’s final days in office.

The FHA sells insurance to protect against defaults and doesn’t issue mortgages. It is a popular loan program among first-time home buyers because it allows borrowers to make a down payment of as low as 3.5 percent with a credit score of 580, on a scale of 300 to 850.

The cut would have reduced the annual premium for someone borrowing $200,000 by $500 in the first year. Some housing industry groups lauded the change, saying it could increase home buying by offsetting recent rises in mortgage rates.

 

[DEAD7]

 

[88m3]

#maga

 

[Maschine_Man]

you know when ppl just sit around waiting to scream outrage when........

 

[Dr. Acula]

Nevermidn I read something wrong.​

 

[Maschine_Man]

#maga

if Obama thought this was such a great idea then why did it JUST happen a few weeks ago?

 

[☑︎#VoteDemocrat]

you know when ppl just sit around waiting to scream outrage when........

Trump just made it harder for the middle class to afford homes.

Congrats, a$$hole.

 

[NkrumahWasRight Is Wrong]

Trump just made it harder for the middle class to afford homes.

Congrats, a$$hole.

It's for first time home owners but yeah.

 

[Maschine_Man]

Trump just made it harder for the middle class to afford homes.

Congrats, a$$hole.

LOL, and why didn't Obama do this before last week?
Trump already suspends Obama-era FHA mortgage insurance cut

Many housing analysts had expected the cut to be challenged. “A delay in the [mortgage insurance premium] cut is probable at this point, but we caution that a delay does not necessarily signal a reversal,” wrote Compass Point analysts on Thursday. “If a delay does materialize, we would likely increase our published odds of a full reversal from 40% to 70%.”

While some progressive groups hailed the cut as a means of helping more borrowers access mortgage credit, it wasn’t universally seen as a big game-changer. For one thing, it was too small to mean big savings for borrowers: FHA estimated it at an average of $500 per year.

And some analysts thought its impact on drawing more borrowers in would be limited. Laurie Goodman, co-director of the Urban Institute’s Housing Finance Policy Center, told MarketWatch that there were other steps FHA could take to entice more lenders to make mortgages, such as limiting its legal actions under the False Claims Act.

Many big banks have quit lending through FHA after being slapped with heavy fines for what they perceive as minor infractions of its rules. One large lender, Quicken Loans, sued the government after being fined.



miss me with the outrage bruh. This was a PR tactic and nothing else.

 

[88m3]

It's for first time home owners but yeah.

they have a few programs

What are you saying about class mobility with that statement?

 

[NkrumahWasRight Is Wrong]

they have a few programs

What are you saying about class mobility with that statement?

Nothing but it probably hurts those in the lower to lower-middle class who may have been renting more than the middle class that likely already owns

 

[DonKnock]

Trump already fuccing over baby boomers who trying to sell their house


Who is this guy allegedly helping besides corporations again?

 

[Tony D'Amato]

He bout to pay off his debts to these banks. Draining the swamp

 

[88m3]

if Obama thought this was such a great idea then why did it JUST happen a few weeks ago?

It's recently become very unaffordable to buy a home even with a fha loan and with regulations(pmi) are making it even more difficult.

 

[GnauzBookOfRhymes]

if Obama thought this was such a great idea then why did it JUST happen a few weeks ago?

Maybe bc interest rates were only recently increased?