No FHA Premium Cut in 2017

HousingWire reports that the Federal Housing Administration (FHA) will not reintroduce a cut to its FHA premiums that had previously been announced by the Obama Administration and later rescinded by the incoming Trump Administration. The article notes that this decision may have been due in part to weaker-than-expected performance of the FHA's Mutual Mortgage Insurance Fund, which had its net worth decline by $1.9 billion and the capital ratio decline to 2.09 percent this year. While this ratio is above the congressionally mandated level of 2 percent, it is below the ratio 2.35 percent in from this time in 2016. HUD noted that had the planned Obama cuts taken place, the MMIF would currently be at 1.76 percent, well below the 2 percent level. The full FHA report can be accessed here.

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