Washington Report

Advocacy Updates from Washington D.C.

FHA Premium Reduction Legislation

Two bills were introduced in the House in the last week that would provide for reductions in the fees borrowers pay on FHA-insured mortgages. Rep. Phillips (D-MN) introduced H.R. 3141, the "Making FHA More Affordable Act of 2019."  This bill will eliminate FHA's current lifetime mortgage insurance premium policy, and allow FHA buyers to cancel their mortgage insurance when the loan-to-value ratio reaches 78%.

H.R. 2162, the “Housing Financial Literacy Act of 2019,” was introduced by Rep. Beatty (D-OH). This bill will permit first time buyers who have gone through approved counseling to lower their FHA mortgage insurance premiums.

These bills will be marked up in the House Financial Services Committee soon, and NAR will advocate for their passage.

Letter supporting H.R. 3141

Letter supporting H.R. 2162