From RISMedia this morning:
FHA Reform Act and Annual Mortgage Premiums; What an Increase Means for Borrowers
This has passed the House now and is on the way to the Senate. Without getting into the reasons for the mortgage meltdown -- Fannie, Freddie, and FHA -- this is probably necessary to replenish FHA's mortgage insurance reserves.
Clearly, FHA has become the loan of choice for minimum down payment buyers over the past couple of years, but will it still be if MI rates triple?
PMI on Conventional loans has gotten so expensive this probably doesn't make FHA less competitive, but at the maximum allowed by this bill it will reduce buyers' purchasing power -- by more than 10%.
Just one more bit of helpful news ....
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