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Increase in FHA Fees is Sinking Deals

By
Mortgage and Lending with LoanOfficerSchool.com NMLS 291249

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MORTGAGE AND REAL ESTATE NEWS    
Increase in FHA Fees is Sinking Deals
Daily Real Estate News - The Federal Housing Administration's rate increases in mortgage insurance have caused buyers to walk away and transactions to fall through, according to the National Association of REALTORS®' second Survey of Mortgage Originators, which includes questions to lenders about the impact of changes to the FHA program. In recent years, FHA has increased its premium structure as a way to make up for the 2 percent capital reserve ratio it's required to keep but lost when many loans went sour during the housing crisis.

The rise in FHA fees is also pricing some buyers out of the market. Lenders surveyed by NAR report that 5.7 percent of originations were lost because of the increase in FHA fees. That would correlate to about 200,000 to 250,000 home sales lost, according to NAR estimates. >>Read More
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for sharing the information. I agree the increase is pricing people out of the market.

Jul 29, 2014 01:22 AM
Bill Ladewig
LoanOfficerSchool.com - Escondido, CA
Experience Is Your Advantage

Hi Gita, thanks for your comment.

Jul 29, 2014 01:27 AM
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Hoping that FHA could re-tweak the fees so it would make more sense to use. 

Jul 29, 2014 10:02 AM