With Falling Market Share, Analysts Doubt if FHA Would Do Another MIP Cut; Factors Other than Share Influence Agency
August 18, 2016
Despite the FHA loss of market share to the private mortgage insurance business in the second quarter of 2016, stakeholders continue to believe that an FHA premium reduction is not likely to occur any time soon. Analysts with Keefe Bruyette & Woods said that, while investor concern about an FHA price cut remains elevated, the likelihood of a cut “is not very high” and the impact would be limited since the FHA is likely to cut rates only by about 30 basis points before hitting the ...