President Donald Trump’s first executive order blocked a mortgage insurance premium cut that would have reduced the cost of mortgages for millions of middle-class home buyers.
The U.S. Department of Housing and Urban Development sent a letter Friday informing lenders, real estate brokers and closing agents the 0.25 percent premium rate cut for Federal Housing Administration-backed loans was suspended.
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The order, made about an hour after Trump took office, reverses a policy change announced Jan. 9 by the Obama administration that would have saved borrowers about $500 a year.
The FHA insures about 16 percent of the homes sold in the country. The loans are popular with first-time home buyers and those without the best credit.
The rate change would have gone into effect Friday.
I suspect Obama’s EO was a land mine set for Trump but I don’t follow what Obama expected to accomplish.
Of course with Trump stopping it will be reported he hates the middle class, but is there more to this story I am missing?
Why do you write all this crapola in the double and often triple negative. No one knows what you are talking about. Its like federal regulations..”you may not, unless, except...”.
A banker friend explained this to me:
This was a POISON PILL Obama left behind that he signed a couple of weeks ago, that was to take effect Jan 27th.
In 2013, FHA got a $1.3 BILLION dollar bailout because Mortgage insurance rates weren’t covering claims. They did it again in 2015.
Cut the rates that were reset in 2015, and we’ll soon have to bail them out AGAIN, and no first-time home owner will be able to get a loan without 20% or more down.
THIS WAS A TRAP that Dems set for Trump, and he refused to play along.
It spin..Trump first executive order if you recall Froze all agencies till review..this spin makes it sound like he targeted this
Pay at least 20% down and you won’t have to worry about mortgage insurance.