Reactions have been mixed on the FHA's latest mortgage insurance premium reduction. But the lower premiums will likely be a boon for one group in particular,, according to Moody's.
Read More »Rep. Hensarling Decries FHA’s Premium Reduction
While many praised the Federal Housing Administration's recent decision to lower its mortgage insurance premiums by 25 basis points, not everyone was a fan.
Read More »FHA Insurance Price Cuts May Have Led Borrowers to Buy Higher-Priced Homes
According to new research by the American Enterprise Institute (AEI) International Center on Housing Risk (ICHR), the FHA’s price cut was largely capitalized into the purchase of higher priced homes. The research reviewed over 2.5 million first-time homebuyer loans. Edward Pinto, the research author and co-director of AEI’s International Center on Housing Risk said that the effort to reduce mortgage premiums did little to expand access to middle-and lower-wealth borrowers, while the National Association of Realtors (NAR) and other housing interest groups reaped the benefits of the higher home prices.
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