President Obama is expected to make at least one Major Housing Announcement Tomorrow when he delivers his housing speech in Phoenix, AZ. The main purpose for the Presidents speech is to address the current state of the market, and the history of how we got here. But along with his overall statement of the market, the President is expected to address specific policy issues/changes which the Lending Industry has been lobbying for.
There are basically three issues/changes which he will address that I want to highlight today in this short blog, and the first one is a major change which all of us have been requesting for sometime now. The three announcements I want to highlight are:
- A 50 basis point reduction in the Annual FHA Monthly Insurance Premium (MIP) from 1.35 to .85.
- Changes to the Fannie Mae and Freddie Mac rep & warrants in hopes of reducing the uncertainty in the risk level Lender face.
- Call for GSE reform in an attempt to send a strong signal to the Congress and Senate to put this as a high priority on their agenda this year.
These three Major Housing Announcement Tomorrow would be a big step towards making housing more affordable, and providing Lenders with a little more confidence in the GSE's. But like anything else the proof will be in the pudding, and the details which will follow after the Presidents speech tomorrows hopefully will start to provide that.
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George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
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