http://www.latimes.com/business/la-fi-trump-fha-cut-20170120-story.html

An hour after Donald Trump assumed the presidency Friday, his administration indefinitely suspended a pending rate cut for mortgage insurance required for FHA-backed mortgages, which are popular with first-time home buyers and those with poor credit.
The move by the Department of Housing and Urban Development — one of the first acts of Trump’s administration — reversed a policy announced in
the waning days of the Obama presidency that would have trimmed insurance premiums for typical borrowers by hundreds of dollars a year.
 
 Some Republicans expressed concern that the rate cut could cost taxpayers if the loans started to go sour and the Federal Housing Administration was unable to cover the losses. The agency needed a $1.7-billion bailout from the U.S. Treasury in 2013 after it expanded its role last decade following the collapse of the subprime mortgage
market.

The FHA does not issue loans, but instead insures mortgages and collects fees from borrowers to reimburse lenders in the case of default. Borrowers can qualify for an FHA-backed mortgage, with down payments as small as 3.5%, even with a credit score as low as 580, which could signal a past bankruptcy or debts sent to collection.

The loans have seen robust growth in recent years and lenders not charteredas banks now control a majority of the historically risky FHA market. The shift toward nonbank lenders has drawn additional concerns because banks have strict reserve requirements while the crop of new lenders operates under a variety of business models.

Last week, during his confirmation hearing, Trump’s nominee for HUD secretary, Ben Carson, said  the rate cut announced earlier this month surprised
him and that if confirmed he would work with the “FHA administrator and other financial experts to really examine that policy.” The suspension of the rate cut, set to take effect Jan. 27, came Friday before his confirmation vote.

In a letter announcing the suspension Friday morning, HUD, which oversees the FHA, said more analysis is needed on any “future adjustments” to insurance premium rates. “FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers,” the letter to
the real estate industry said. 

In cutting the insurance premium, the Obama administration had argued that the FHA’s finances had vastly improved since it received its first-ever bailout in 2013 to cover
potential losses on the huge volume of low-down-payment mortgages it insured from 2007 to 2009.  The administration noted that the agency’s Mutual Mortgage Insurance Fund’s capital reserve ratio exceededrequirements for the second year in a row.

“With sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” former HUD Secretary Julian
Castro said in announcing the cut.  The suspension of that decision will be a disappointment to home buyers currently out shopping,especially on top of the rise in mortgage interest rates following the November election.

If the planned reductions went into effect, borrowers who put down less than 5% on a $600,000, 30-year mortgage would have saved $1,500 a year. The Obama administration estimated that new FHA borrowers across the nation would have saved an average of $500 a year. 

“That is real money,” said Southern California mortgage broker Jeff Lazerson. Lazerson, president of Mortgage Grader in Laguna Niguel, said he had several clients who were putting off deals so they could get a cheaper insurancerate after Jan. 27. 

“We got lots of calls,” he said. 
In its letter announcing the suspension of the rate cut, HUD did not give atimeline for any coming decision and said the suspension was indefinite.

UPDATES:
2 p.m.: This article has been updated throughout with additional background on
the FHA and details of the savings the suspended rate cut would have
meant for borrowers. 
                               
                                   
 edit: formating

"you must believe in yourself when no one else does, like now for instance"

Guessing this isn't going the way Op thought it would?

And no fucks given........if that piddly little bit of money is a deal breaker you have no business taking out a mortgage.

OP, maybe you could sell cars.

LOL concern trolls activate!

Construction crews being paid to build houses that are sold and then the mortgage is defaulted are not a good thing, long term. Every link in that chain makes the eventual failure bigger.

If all the homes that are built are sold and all the homes that are sold have their mortgages paid off, America becomes greater again.

Your post comes off as entitled.

Lol, go be a commie somewhere else.

Zero fucks given about you and your marginal client.

But, but, but...it's the American dream!!!!  Everybody's *entitled* to "own" a home.

disregard

Sort of like you not coughing up $24.

I think government home loans are a negative.  Distorts demand 

FHSA home loan recipients voted Hillary anyway so fuck 'em.

I am in this thread. I'm angry and I don't know why. Fuck first time buyers, either that rate is for all or fuck them!

30k or less down on a 600k mortgage? "Go fuck yourself!" should be the only response to a loan request as absurd as that.

8 years and less than 300 posts.

dude.....

This.  It helps NO ONE.

"Trump needs to cut everyone else's piece of the FSA pie but mine!!!!"

Hey OP, TAKE A HIKE.

"promoting that for our clients."

Maybe stop using promotions and sales gimmicks to sell people very expensive lifelong things so you can meet your quarterly sales figures?

ETA: Also, fyi, we don't make policy decisions based off your sales pitch.

Bah I have FHA

Agreed. If you can't afford a 10-20% down payment you shouldn't be buying a house, or at least not as expensive of one

Who in the motherfuck is buying a 600K house with an FHA loan?

One more thing for OP and the people upset by this.

Obama did very good things for the firearms industry. It was like 8 years straight of the Clinton AWB rush. Should the firearm industry have supported Obama?

Trump will probably usher in (relatively) depressed sales in the firearms industry. Should the firearm industry oppose Trump?

Your industry is your industry, but the effect that the government has on your industry is not 1:1 with whether the government's actions are good or bad.

LOL OP. Stop churning non qualified buyers for commission you leech.

So it will slow down illegals gaining employment and convicts?  Great.

Hey, parasite, it's not my job to pay your bills.  If your financial condition is such that you have to have $500 to qualify/pay for a mortgage, then people are doing you a disservice to loan you money and put you in a position of an untenable financial burden.

Rent.

Damn, I am starting to wonder if nevertrumpers have ever been right about anything...I thought it was just politics, but man it seems like it's everything...reminds me of liberals..always wrong....

Everyone is against welfare except when it benefits them.

We need less government, and this is one example of Trump delivering on that.

More winning, preventing another real estate bubble/crash in advance by stopping sales of homes to those who can't afford them in the first place.
Because that worked out so well the first time...
MAGA!

Interest rates should be 2+ point higher then they are anyways.

Yeah. OP is helping to reinflate the housing bubble which was never really allowed to deflate (banks have been keeping foreclosed homes off the market).

And both of them are non-paying freeloaders here.

I guess they are waiting for the government to pay their way, too.

Nor student loans either.

Hey mister, yer not from round here, are ya.

yep.. even if you go in at 5% down when you hit 20% of loan value you can (should) cancle PMI.

with FHA all to the PMI insurer gets that PMI forever and you have no say outside of a refi.. its a fucking scam.

Strange indeed...

pgaplayerless acts like a retread lib poster, who's been off the rails acting like a lefty this week

Blow it out your barracks bag.  

Click.  Useless poster.

Yep

Locusts.

Been done before...

Yup.  The tax payer ain't here to make your jobeasier, bro.

This!
In my opinion getting a mortgage is to easy most of the time. It should be no 20% down and or bad credit history then tough shit, fix those two issues and get back with us.

FSA folks gonna whine when the FS stops flowing

Because the mortgage collapse was such a boon to the construction industry...

Looks like you turned into the jackhole

This.

The OP can go <CoC>

cant link since WSJ but.....

The Mortgage Market’s $1 Trillion Pocket of Worry
Nonbanking firms take on bigger share of FHA-backed mortgages
By ANNAMARIA ANDRIOTIS
Updated Jan. 19, 2017 7:04 a.m. ET
Bonds backed by certain risky single-family mortgages topped $1 trillion for the first time in November, crossing that threshold amid rising warnings for one corner of the housing market.


those FHA loans?