Last week the FHA announced it would increase annual mortgage insurance premiums by 0.25% to "bolster capital reserves", effective for case numbers ordered on or after April 18, 2011. Naturally the sudden spike in fees led to a chorus of Bronx cheers from inside the housing industry. Originator, Realtor, and Borrower feedback was generally themed along the lines of comments like "GREAT TIMING. REDUCING THE POOL OF QUALIFIED HOMEBUYERS WILL DEFINITELY BOOST THE HOUSING RECOVERY".
Please note sarcasm. And yes, capital letters were intended to imply yelling. Beyond the frustrated muttering that emanated from the trenches, a deeper explanation of this move was requested as this move seemed to make no sense at all. So in the spirit of transparency and open communication from industry leadership, FHA Commissioner David Stevens decided it was time to pen another letter offering more perspective on the issue. The following words are his, not MND's....
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Source: http://www.mortgagenewsdaily.com/02222011_fha_mip_increase.asp
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