Lack of FHA Chief Fuels Uncertainty about Premium Cut

An article from the American Banker notes that despite the increasing strength of the Federal Housing Administration (FHA) insurance fund, the absence of a confirmed agency head casts uncertainty on the temporary rescission of an FHA premium rate cut that had previously been announced in late 2016. The article notes that in late 2016, the prior administration announced plans to reduce the FHA premium by 25 basis points to 60 basis points.

However, the incoming Trump administration announced that the previously announced reduction, which had not yet been implemented, would be suspended pending further review. While Ben Carson, the current Secretary of U.S. Department of Housing and Urban Development, has since pledged to review the policy regarding the rate cut and its rescission, the article notes that a final decision will likely be forestalled until a new FHA chief is appointed.

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