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It never ceases to amaze me about what the Government does to help shore up our deficits. Regardless of what political party you support, those of us in the industry know first hand have seen a myriad of changes to the lending and real estate landscape over the last three plus years.
In an attempt to shore up FHA mortgage insurance short-fall, Secretary Donovan announced today that FHA would be again raising both the Up-Front MIP Premium and also the Annunal Mortgage premium. The increases are to take affect on April 1, with a second increase going into affect on June 1 for those loans above $ 625,500.
This means that potential buyers entering contract with their lender registering their loan with FHA on or after April 1 will incur higher costs, as well as, higher monthly payments. While I can understand some of the concerns, it just seems to me that we are placing more burdens on new homeowners for problems caused by those in the past ( Both Lenders and Buyers, but Remember the Lenders approve the loans ). Just my honest opinion only.
We are at a point in our Country's history where we need to stimulate housing vs hindering it. How about taking a look at our Government's " Excess " and " Duplicated " spending habits and programs.
Housing has always driven our economy, and it's about time to get back to basics. Instead, we are just adding to the problems with a new fix.
To view an article in Mortgage News Daily about this new change, Please refer to the link below: You may have to scroll down to the middle of the article to get the new summary of FHA MIP fee increases.
http://www.mortgagenewsdaily.com/channels/pipelinepress/02282012-fha-mip-increase-nexbank.aspx
Some of the views stated above are my own, and not those of Ar or the Mortgage News Daily
Thanks for reading
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