A plan to roll back a cut in mortgage insurance premiums was short lived.
According to MarketWatch, on Friday, the Federal Housing Administration said that a reduction of 25 basis points in insurance premiums “has been suspended indefinitely.” The plan was announced just days earlier by outgoing Housing and Urban Development head Julian Castro.
After a two-month long surge in mortgage rates, the reduction was meant to help borrowers gain mortgage access.
While some progressive groups hailed the cut as a means of helping more borrowers access mortgage credit, it wasn’t universally seen as a big game-changer. For one thing, it was too small to mean big savings for borrowers: FHA estimated it at an average of $500 per year.
PB Topical Ref
