Washington Report

Advocacy Updates from Washington D.C.

NAR Joins Coalition Letter Urging Premium Reduction and Ending Life of Loan Requirement

On Wednesday, February 23, 2023, Vice President Kamala Harris and Housing and Urban Development (HUD) Secretary Marcia Fudge announced a 30 basis point reduction in the Federal Housing Administration’s (FHA) mortgage insurance premium (MIP).

The decision to reduce the MIP comes after a strong financial performance in FHA’s capital reserve ratio, which currently stands at 11% - 9% above what is statutorily required.

NAR has continuously advocated for responsibly reducing the MIP to help qualified buyers in the current market, and FHA projects this reduction will save new buyers with FHA mortgages an average of $800 in their first year of homeownership.

Read NAR’s coalition letter to the White House Economic Council