MBA Statement on HUD’s Reduction of the Mortgage Insurance Premiums on FHA Loans
WASHINGTON, D.C. (February 22, 2023) — MBA's President and CEO Bob Broeksmit, CMB, released the following statement on the Department of Housing and Urban Development’s (HUD) announcement to reduce mortgage insurance premiums on Federal Housing Administration (FHA) loans:
“MBA thanks HUD Secretary Fudge and FHA Commissioner Gordon for reducing mortgage insurance premiums for FHA loans, a move we have strongly encouraged since 2021.
“The lower premiums will expand homeownership opportunities by lowering mortgage payments for qualified FHA borrowers, providing critical relief from the steep rise in mortgage rates and home prices just in time for the spring buying season. This will especially help minority homebuyers and low-and moderate-income households who are predominantly served by FHA loans.
"The Mutual Mortgage Insurance Fund is strong, with low delinquencies and a capital reserve ratio several times above the statutory minimum.
“Ensuring a robust FHA program that protects taxpayers and offers affordable homeownership opportunities for families in underserved communities is important, and we will work with the Biden administration and Congress on policies that have the greatest impact on borrower affordability and sustainability.”