Washington Report

Advocacy Updates from Washington D.C.

FHA Suspends Mortgage Insurance Premium Reduction

On Friday Jan. 20, 2017 the Trump Administration ordered a freeze on new and pending regulations. The recent 25 basis point reduction to the Federal Housing Administration Annual Mortgage Insurance Premiums was included under this freeze. It has been suspended and is currently under review. 

NAR President William E. Brown released a statement in response to the announcement: 

“According to our estimates, roughly 750,000 to 850,000 homebuyers will face higher costs, and 30,000 to 40,000 new homebuyers will be left on the sidelines in 2017 without the cut. We’re disappointed in the decision but will continue making the case to reinstate the cut in the months ahead.”