Welcome to the SDsells.com Blog

2017-02-03 17:58:33
Trump Suspends FHA Fee Reduction

ONE OF TRUMP'S FIRST ORDERS MEANS HOME LOAN FEES WON'T GO DOWN 

Friday was the day that many homebuyers across the country were to start saving on average $500 a year on their loans. A fee reduction was set to go into effect at the Federal Housing Administration, lowering the cost of nearly 1 million FHA loans per year. But that's not going to happen, at least for now, because in his very first hours in office, President Trump issued an order suspending that fee cut.

The Obama administration had authorized the fee reduction for FHA loans earlier this month. Trump's order says it is now 'suspended indefinitely.' The Trump administration could ultimately allow it to go through, but the order states 'more analysis and research are deemed necessary.'

Geoff McIntosh, president of the CALIFORNIA ASSOCIATION OF REALTORS©, said his group was disappointed by the Trump administration's move. 'It would have made a difference to California homebuyers of about $860 a year,' McIntosh told NPR.  

 Making sense of the story 

  • The higher the price of the home, the greater the savings since the fee in question was to be cut by 0.25 percentage points of the total amount borrowed; on a $400,000 home loan, the savings would be $1,000. 

  • Why would the new administration want to keep that money out of Americans' pockets? The order doesn't say precisely. But some conservatives had warned that cutting the fees for FHA borrowers might leave taxpayers on the hook in another housing crash.

  • 'FHA insures over $1 trillion in outstanding mortgage loans,' says Ed Pinto, co-director of the American Enterprise Institute's Center on Housing Risk. He sees that as a potentially ominous liability given the FHA's cash reserves.

  • Other analysts disagree and say the FHA is once again on strong financial footing and they say the fee cut was justified.
 
Blog Archive
2018-06-18 14:03:36
2018 Impacts On Home Values

2018-01-16 15:32:58
Requirements for Purchasing a Home

2018-01-10 17:33:19
Energy Ratings for Windows & Doors

2017-11-14 13:38:20
Home Buying Process

2017-09-18 12:25:12
What Affects Property Values?

2017-08-22 10:42:01
UCSD Ranked 15th in the World

2017-08-03 09:19:12
BATHROOM TRENDS FOR 2017

2017-07-11 10:53:08
California's New-home Energy Goal 2020

2017-04-08 12:32:58
3 Reasons You Should Buy a Home by 2017

2017-03-30 11:46:55
Top Landscaping Trends

2017-02-24 11:53:36
CA Housing Market High Jan. 2017

2017-02-09 15:58:29
For Sale By Owner?

2017-02-06 10:17:08
National Housing Index Hits New Peak

2017-02-03 17:58:33
Trump Suspends FHA Fee Reduction

2017-01-19 11:00:43
THE Most Expensive Home: $250M Bel Air Mansion

2016-12-16 16:35:31
Fed Raised Interest Rates By 0.25%

2016-12-12 16:27:16
Rents Rise 12% in San Diego

2016-12-07 16:19:43
5 Reasons Homeowners Should List Their Homes Now

2016-11-28 16:13:57
Bathroom Design A to Z

2016-11-18 11:39:18
10 Ways to Use Deep Purple Foliage in Your Garden

2016-10-10 11:30:29
Decorating Smaller Spaces

2016-10-07 00:48:33
Energy efficient Homes have higher values

2016-09-30 00:34:04
Should You Rent Out Your Home?

2016-09-15 00:16:40
Eight Steps To Selling Your Home

2016-08-12 00:08:24
Should You Borrow From Your 401k?

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.