An ATTOM Data Solutions analysis released Thursday found that the average U.S. borrower with an FHA loan would have saved an average $446 each year if the rate reduction had gone into effect.

When FHA first announced a cut, the real estate industry applauded the move. National Association of Realtors® President William E. Brown called it "a question of simple math … Every time we cut the cost of mortgage insurance it means more borrowers meet the debt-to-income ratio required to purchase a home. It follows that dropping mortgage insurance premiums today will mean a whole lot more responsible borrowers are suddenly eligible to purchase a home through FHA."

JFLNYC wrote:I mentioned on Friday that one of the first executive orders Trump signed was one which suspended a HUD rule lowering PMI for FHA home buyers. He did so right after telling the world that the forgotten Americans would be forgotten no more.

JFLNYC wrote:The HUD rate reduction must have been pretty much a rounding error in the Federal budget. It was really an almost gratuitous assault on the little guy, especially for young people looking to buy their first homes. Yet Trump and the Republicans made sure it was done literally minutes after the inauguration.

The money borrowers pay for premiums is funneled into the FHA's Mutual Mortgage Insurance Fund, which is used to cover losses from insured loans that become delinquent. During his questioning at the confirmation hearing, Toomey expressed concern over the agency's financial buffer, known as a capital ratio.
"The capital ratio that is the statutory requirement minimum is 2%, it's only at 2.32[%]--this strikes me as very little buffer above the minimum. And after all, as recently as 2013 the FHA needed a bailout," the senator said.

drsmooth wrote:

JFLNYC wrote:I mentioned on Friday that one of the first executive orders Trump signed was one which suspended a HUD rule lowering PMI for FHA home buyers. He did so right after telling the world that the forgotten Americans would be forgotten no more.

jeez, J, you're so old you don't remember the checklist - first you fuck them, THEN you forget them

Soren wrote:My wife went to the march in DC. She said she was overwhelmed by how positive the experience was. Police officers were cheered, the vibe was good.

She decided to check facebook last night and was bombarded with posts about how hateful and hypocritical the liberals who marched were. She was pretty devastated by it.

RichmondPhilsFan wrote:

JFLNYC wrote:The HUD rate reduction must have been pretty much a rounding error in the Federal budget. It was really an almost gratuitous assault on the little guy, especially for young people looking to buy their first homes. Yet Trump and the Republicans made sure it was done literally minutes after the inauguration.

I've been talking about this since Friday as well. It's insane. His claims of "giving power back to the people" hadn't even stopped echoing on the National Mall when he signed that order.

Sean Duffy was on CNN Saturday morning claiming that the mortgage pool was "barely solvent" as it was and the 0.25% reduction would've made it insolvent. (He of course claimed superior knowledge because he sits on the House Financial Services Subcommittee.) Chris Cuomo challenged him for the numbers, but Duffy of course said he'd have to get back to him.

At the same time, I was pretty pissed that CNN didn't have those numbers ready to go for him to corner Duffy on that point. The only thing that I can find even somewhat relevant is from this CNN Money article:

The money borrowers pay for premiums is funneled into the FHA's Mutual Mortgage Insurance Fund, which is used to cover losses from insured loans that become delinquent. During his questioning at the confirmation hearing, Toomey expressed concern over the agency's financial buffer, known as a capital ratio.
"The capital ratio that is the statutory requirement minimum is 2%, it's only at 2.32[%]--this strikes me as very little buffer above the minimum. And after all, as recently as 2013 the FHA needed a bailout," the senator said.

Critics argued that lowering FHA premiums would threaten the solvency of the MMIF, which did require a $1.7 billion bailout in 2013, the first in the agency’s history, owing to a surge of defaults after the housing bubble collapsed. However, the finances of the MMIF have significantly improved since then, amid modest recovery in the housing market. By law, the fund must be maintained at least at 2 percent of the total FHA loan portfolio. The FHA puts the current figure at 2.32 percent.

“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” Housing and Urban Development (HUD) Secretary Julian Castro wrote earlier this month in announcing the change.

JFLNYC wrote:

RichmondPhilsFan wrote:

JFLNYC wrote:The HUD rate reduction must have been pretty much a rounding error in the Federal budget. It was really an almost gratuitous assault on the little guy, especially for young people looking to buy their first homes. Yet Trump and the Republicans made sure it was done literally minutes after the inauguration.

I've been talking about this since Friday as well. It's insane. His claims of "giving power back to the people" hadn't even stopped echoing on the National Mall when he signed that order.

Sean Duffy was on CNN Saturday morning claiming that the mortgage pool was "barely solvent" as it was and the 0.25% reduction would've made it insolvent. (He of course claimed superior knowledge because he sits on the House Financial Services Subcommittee.) Chris Cuomo challenged him for the numbers, but Duffy of course said he'd have to get back to him.

At the same time, I was pretty pissed that CNN didn't have those numbers ready to go for him to corner Duffy on that point. The only thing that I can find even somewhat relevant is from this CNN Money article:

The money borrowers pay for premiums is funneled into the FHA's Mutual Mortgage Insurance Fund, which is used to cover losses from insured loans that become delinquent. During his questioning at the confirmation hearing, Toomey expressed concern over the agency's financial buffer, known as a capital ratio.
"The capital ratio that is the statutory requirement minimum is 2%, it's only at 2.32[%]--this strikes me as very little buffer above the minimum. And after all, as recently as 2013 the FHA needed a bailout," the senator said.

Being 16% above the statutory minimum seems pretty solvent to me. Alternative facts, I guess.

Critics argued that lowering FHA premiums would threaten the solvency of the MMIF, which did require a $1.7 billion bailout in 2013, the first in the agency’s history, owing to a surge of defaults after the housing bubble collapsed. However, the finances of the MMIF have significantly improved since then, amid modest recovery in the housing market. By law, the fund must be maintained at least at 2 percent of the total FHA loan portfolio. The FHA puts the current figure at 2.32 percent.

“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” Housing and Urban Development (HUD) Secretary Julian Castro wrote earlier this month in announcing the change.

Don't know about you but I'd be willing to bet our new masters are going to lower bank capital requirements.

pacino wrote:

Soren wrote:My wife went to the march in DC. She said she was overwhelmed by how positive the experience was. Police officers were cheered, the vibe was good.

She decided to check facebook last night and was bombarded with posts about how hateful and hypocritical the liberals who marched were. She was pretty devastated by it.

there's more of her than there are of the ones bashing it. never forget that.

JFLNYC wrote:

pacino wrote:

Soren wrote:My wife went to the march in DC. She said she was overwhelmed by how positive the experience was. Police officers were cheered, the vibe was good.

She decided to check facebook last night and was bombarded with posts about how hateful and hypocritical the liberals who marched were. She was pretty devastated by it.

there's more of her than there are of the ones bashing it. never forget that.

And half the bashers are Russian.