A reduction of Federal Housing Administration (FHA) annual mortgage insurance premium rates was scheduled to take effect on January 27. One of the Trump Administration's first actions was to suspend the reduction.
Just two hours after President Trump took office, the Federal Housing Administration sent a letter [pdf] announcing the end of a "controversial plan" to reduce mortgage insurance premiums. Sarah N. Lynch reports on the quick announcement for Reuters.
The letter states "more analysis and research are deemed necessary to assess future adjustments..." as a reason for suspending the adjustments. According to Lynch, the adjustments split Congress along partisan lines when proposed by the Department of Housing and Urban Development earlier this month. Republicans argued that the adjustments would introduce too much risk to the FHA, which received $1.7 billion—the first taxpayer funding in its history—in 2013.
Read the full story: U.S. housing regulators suspend plans to cut mortgage premiums
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