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.
and no first-time home owner will be able to get a loan without 20% or more down.
Which is exactly the way it was when I bought my first house and it needs to go back to 20%.
That makes sense