IMF news: Obama Will Unveil Lower FHA Premiums on Thursday
President Obama on Thursday is expected to announce an executive action to lower FHA premiums, according to multiple industry sources.
According to trade group representatives and other officials, the annual premium is expected to be trimmed by roughly 50 basis points. On a $175,000 mortgage that could save borrowers $50 a month.
?It?s great news,? one FHA lender told IMFnews. ?FHA is basically lowering the MIP to compete with Fannie and Freddie 97 LTV loans. This is great news for business since FHA loans are easier to qualify for.?
Brian Chappelle, a principal in Potomac Partners, noted in a recent analysis that annual FHA premiums have soared 145 percent since 2010.
President Obama is expected to unveil the announcement during a speech before a Phoenix high school.
The National Association of Realtors recently estimated that in 2014, nearly 234,000 creditworthy borrowers were priced out of the housing market because of high FHA insurance premiums
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