Only weeks after the Obama administraion approved it, the incoming Trump administration reversed course and suspended an action to reduce mortgage insurance premiums.
Initial press reports were negative, but National Mortgage Professional Magazine says the decision's true impact is being misinterpreted.
“But going beyond partisan media, the mainstream and trade media seemed to emphasize a stunning degree of doom and gloom in this action,” the magazine report says. The action only pertained to about 18% of FHA mortgages, and the policy was suspended pending further review. The Obama policy had not yet gone into effect, and it could be reinstated at some point. Trump’s action essentially kept the existing policy in place, and did not take action to raise rates or mortgage premiums.
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