2017 FHA MIP Change That Wasn't
I have seen so many facebook posts about the FHA MIP mortgagee letter that "postponed" the .25% MIP reduction within 1 hour after Donald Trump was sworn in as the President of the United States.
Here's a few:
But he just nullified the fee reduction for first time FHA buyers, making it more expensive for poor people to buy a home.
...and homeownership just got more expensive
Early Trump Moves Makes Housing More Expensive For Millions
Trump Suspends Order That Would Have Made Mortgage
Insurance Cheaper for 1M Households NBC New York
First Act Of Trump Administration Make Housing More Expensive Again
Trump takes away FHA mortgage insurance not long after being sworn into office
Trump already suspends Obama-Era Mortgage Insurance Cut
Sure seems like there is something rotten in Denmark.
On January 9th, there was a mortgagee letter that indicated that for loans "closed or funded" after Jan 27th the mortgage insurance premium would be reduced by .25%.
This would equate to about $30-$60/month depending on the loan size for borrowers. This is not life changing for most, but could encourage some homeowner's to refinance and would offset some of the increase in rates that we have seen since the elections.
In 17 years in this business, any changes to FHA, the changes have been based on the date that the case number was assigned, not on the closing date. That was strange.
I am sure there were thousands of loan officers who were contacting their clients to let them know they were going to save money. There were home buyers that found out they were going to save money on their new mortgage, some could even afford a little more. Companies were scrambling to update their loan software and closing systems. And there were probably some contract extension written to ensure that buyers could take advantage of the change.
...But then it was halted. Trump and his administration are vilified for hurting the poor, taking away the American Dream for deserving people.
I don't care which side of the aisle you are on, you have to admit that this seems a bit contrived.
Who looks like they were trying to be a hero? Who looks bad? How much money, time, and emotions were wasted on all of this?
Check this out and then decide for yourself...Rotten, that is what I say!