HUD Says It’s Too Soon to Roll Back Premiums; FHA Insurance Fund Is Not Completely Healed
April 10, 2014
FHA Commissioner Carol Galante has rejected mortgage industry calls to lower mortgage insurance premiums, saying that while the Mutual Mortgage Insurance Fund is on the mend it still has not fully recovered from the impact of massive legacy losses. Speaking at the Mortgage Bankers Association National Advocacy Conference in Washington, DC, this week, Galante said the Department of Housing and Urban Development is currently focused on strengthening the fund and expanding access to credit for all qualified borrowers. She reminded lenders that mortgage premium increases – five hikes from 2008 to 2013 – were necessary to protect the MMIF and properly price for the risk the FHA is assuming. “The MMI Fund is...