Analysts Believe Further MIP Cuts Doubtful But Stronger MMI Fund May Convince Them Otherwise
November 10, 2016
The question of whether FHA should do another mortgage insurance premium reduction is pretty much on stakeholders’ minds as they anticipate the release of the annual actuarial review of the Mutual Mortgage Insurance Fund next week. Analysts, however, are not ready to change their opinion that further MIP cuts are unlikely. Some analysts said they would reconsider their views if the upcoming report showed strong growth in the MMI Fund, while others believe FHA’s priorities today are different than they were in early 2015, when the agency cut the annual premium for forward mortgages to 0.85 percent. The FHA’s decision to lower the annual MIP was spurred...