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FHA Premium Reduction Coming Soon
PRESIDENT TO ANNOUNCE A 50 BPS REDUCTION IN
President Obama is expected to announce tomorrow a 50 basis points reduction in the FHA annual mortgage insurance premium, from 135 basis points to 85 basis points, according to press reports published this afternoon. The President is scheduled to address the housing market and home ownership in a speech tomorrow.
Just two months ago, the CMLA urged a reduction in the FHA premium at a White House meeting. A delegation of CMLA members, led by CMLA Chair Paulina McGrath, urged the Obama Administration to reduce the FHA annual premium, pointing to the sharp declines in FHA loan volumes and the fact that the multiple increases in the FHA premiums since 2009 had priced many creditworthy borrowers out of the market. A copy of CMLA’s position paper presented at the White House meeting can be downloaded here.
The President is scheduled to deliver a speech on housing tomorrow at Central High School in Phoenix, where he will discuss the housing recovery and "announce new steps to help more Americans achieve the American dream of owning a home", according to a White House statement.
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