March 2017   Volume 43, Number 3      


Trump Administration Suspends Mortgage Premium Rate Cut

The Department of Housing and Urban Development suspended a reduction to the annual mortgage insurance premiums borrowers pay when taking out government-backed home loans. The cut was announced during the final days of President Obama’s term and has since been “suspended indefinitely” by President Trump.

The cut reversal was a part of a memorandum from White House Chief of Staff Reince Priebus to all executive departments and agencies to freeze new and pending regulations from the previous administration.

According to the Federal Housing Administration, the cut, at a quarter of a percentage point, would have saved homeowners an average of $500 this year. Borrowers with larger home loans would have seen an even larger reduction in their premium rate.

“The capital ratio that is the statutory requirement minimum is 2%, it’s only at 2.32[%]—this strikes me as very little buffer above the minimum. And after all, as recently as 2013 the FHA needed a bailout,” said Republican Senator Pat Toomey from Pennsylvania, during his questioning at the confirmation hearing for HUD secretary, Ben Carson.

Borrowers with lower credit scores or those who cannot afford the traditional 20 percent down payment prefer FHA loans. However, recent increases in home prices, along with mortgage insurance premiums, can make monthly payments high.

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In this issue:

How Trump’s Tax Plan Will Impact Real Estate

Average Real Estate Commissions Decline to Low 5 Percent Range

Consumer Sentiment Declines in January but Remains Near 13-Year High

Foreign Real Estate Investors Still Confident About U.S. Real Estate

Mortgage Applications Decline 12 Percent to End 2016

New Report Names CEO of Zillow as Most Powerful Person in Residential Real Estate

Rising Home Values Haven’t Shaken Consumers’ Memories of the Financial Crisis

U.S. Real Estate Sales Could Be Affected by China’s Capital Controls

Trump Administration Suspends Mortgage Premium Rate Cut

Keep an Eye Out for At-Risk Senior Clients


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