Ready2Downsize
Well-known member
peppy said:Ready2Downsize said:Loco_local said:http://realtormag.realtor.org/daily-news/2017/01/23/trump-puts-halt-fha-mortgage-cuts
Trump Puts a Halt to FHA Mortgage Cuts
DAILY REAL ESTATE NEWS | MONDAY, JANUARY 23, 2017
Just hours after being sworn in, President Donald Trump moved to suspend a plan to reduce the Federal Housing Administration?s mortgage insurance premiums that was set to go into effect on Jan. 27. The reduction had been announced on Jan. 9 by the outgoing Obama administration and Housing and Urban Development head Julian Castro.
So he suspended the plan which Obama waited 8 years to put in place that wouldn't take effect until after he left office? It didn't take effect so there is no increase in payments, right? There is no decrease in payments.
FHA allows buyers to purchase with as little as 3.5% down and this fee that Obama tried to put in effect 8 years after coming into office which wouldn't take effect until he left is to cover costs in case buyers walk away from their mortgage. A dip of 3.5% means these FHA buyers could be under water. In fact putting down only 3.5% would mean they couldn't sell their house if there was no gain at all and not have to pay to get out of their mortgage.
Oh......... that fee. Yeah, ok. I'm getting out my violin for all those who just saw their payments go up. Oh wait............. there weren't any of those. Only people counting on a reduction seeing their payments stay the same. Guess I have to put the violin back in the case for a while.
Wasn't that just a quarter point rate reduction in insurance premium for the loan? If that small change ($100/mo on a $500k loan) keeps up to 40k homebuyers (according to your trusted Realtor association) on the sidelines then maybe they weren't in a position to buy a home in the first place ...
It never even took effect. It was signed what? 10 days before Trump took over. Obama had 8 years to put that thru and he waited until he had 10 days left in office and knew Trump would be in office when it was to take effect. Cry me a river over something that wasn't even in effect that Obama knew had Republicans up in arms. He most likely knew it would be suspended toot sweet.