And So It Begins

1 Like


Jumbo Mortgages rates jumped to 4.3% today !

It was frozen together with many many other rushed regulations during the last days of Obama. It might be implemented later.

Obama made many regulations in a rush and he fully expect them to be reversed by new administration. A total waste of government resource for personal benefit.

“Responding to the possible repeal or delay, National Association of Realtors president William E. Brown said in a statement to NerdWallet, “We’re disappointed having heard reports that the mortgage insurance premium cut was included in a wider regulatory freeze, but it’s important to remember that this policy wasn’t singled out. That leaves the door open to implement the cut in the near future.””

Obama made over 500 regulations in a rush and he fully expect them to be reversed by new administration. A total waste of government resource for personal benefit.

Make many laws just for the purpose of being reversed. OMG.

I hope singing so many regulations did not hurt the health of the former presidnet’s and current president’s hand and wrist! :smile:

Or Trump could have let them stay. Like lower FHA premium. What’s so terrible about it?

It’s a blanket freeze now. Does it take time to examine each of the 500+ rushed regulations in his last days?

Lower FHA could well be implemented. But out of 500+ regulation made in a hurry for the purpose of unknown motivation, it might take some time. This decision should be made by new HUD chief, not someone who was ousted today.

Why didn’t they lower it last year when they are in control? It is disgusting to play dirty politics for the sole purpose to cause damage to new administration by wasting taxpayer resource.

Blanket rollback is more political. The only reason they got rolled back was because Obama signed them. No consideration of merit. That’s the exact definition of political.

1 Like

It’s a shame to abuse presidential power for personal legacy and for disturbance to the new president.

Bush was graceful to Obama. Well, Onama forgot how to behave. It can only back fire.

Btw, it’s a freeze, not a blanket rollback. Freezing means examination by its merits.

Roll back, like the old Wal Mart ads.

I hope they don’t roll all the way back to slavery… :thinking:

1 Like

Donald Trump entered the White House today rueing that “the wealth of our middle class has been ripped from their homes.” Then he raised mortgage costs for millions of new American homeowners.

Among Trump’s first actions as president was sending an emergency order (pdf) to US lenders and real estate agents that increased the amount of money first-time home buyers and low-income borrowers must pay to get a mortgage. The move reverses a decision by the Obama administration earlier this month to cut the cost of federal mortgage insurance by 0.25%, enough to save the average borrower $446 a year.

The cut was expected to help 250,000 more people afford new home loans over the next three years; in 2015, the most recent year we have full data for, the FHA insured 1.1 million new home loans.

1 Like

Slavery? Repubicans abolished slavery, you need a Democratic president to get it back.


That’s a great headline. Obama made the change in the last few days. If it was such a good idea, why didn’t Obama do it years ago? If FHA runs out of money to cover loan losses, all the tax payers are on the hook for losses. I’d think you’d want these decisions made by people studying the numbers not a president.

I don’t know. Fiscal prudence?

These insurance premiums are part of the Federal Housing Administration’s efforts to protect the wide availability of the 30-year, fixed-rate home mortgage. Rising interest rates have made those mortgages more expensive for borrowers overall, and the rate cut under Obama was intended to help balance out those increases and preserve home affordability.

Yeah, Clinton did a bunch of stuff to lower lending requirements and increase home affordability. Then it all blew up under Bush. It was a HORRIBLE idea. You realize FHA Is a 3.5% down loan, and the min credit score is 580. If you have 10% down, then you can have under 580. Didn’t subprime end badly? FHA is government insured. If these people default, tax payers on the hook.

You could legitimately argue lowering the insurance fees if default rates were lower, and the had excess reserves. That’s not what this is.

"Have Automatic Transfers to the MMI Fund From the General Fund of the Treasury Ever Occurred?

Prior to 2013, no transfers to the MMI fund were necessary. In fiscal year 2013, however, the balance in the MMI fund dropped below what was needed to cover losses on the single-family and HECM programs. In particular, an increase in the estimated cost of those two programs of $22.4 billion was recorded as a federal expenditure in September and the balance in the MMI fund fell by a corresponding amount, though additional cash flows in and out of the fund have been recorded since the start of fiscal year 2014. (Such changes in the estimated cost of federal loan and loan guarantee programs are known as “credit reestimates” and generally occur each fiscal year; the reestimates can vary in size and direction.)

In response to the MMI fund’s shortfall, FHA used its existing legal authority under FCRA to draw $1.7 billion from the Treasury into the MMI fund. This transfer of funds marks the first time that authority has been used by FHA. Because the transfer is an intragovernmental shift of funds, it did not affect the deficit; however, the increase in the estimated cost of the FHA’s programs raised federal spending and the deficit by $22.4 billion in the fiscal year just ended.""

So recently, the insurance fees haven’t but the losses. You can’t justify lowering the insurance fees.

Oh boy, you’re gonna LOVE the Trump administration.


Quicken Loans today is the F.H.A. insurance program’s largest participant.

1 Like

Subsidies like this do nothing but artificially inflate prices. Just like the mortgage deduction which is a direct wealth transfer from the poor, who can’t use it because their standards deduction is bigger, to the rich who have huge incomes that it allows them to leverage, further increasing prices so the poor are priced out. Anyone who understands basic economics understands the futility of these programs.

1 Like