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Trump Administration discontinues mortgage insurance discount for new homeowners

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The Trump Administration has already started making orders. Today it directed the Department of Housing and Urban Development to suspend a recently approved program that would decrease mortgage insurance rates for homeowners.

According to the Federal Housing Administration, the reduction would have allowed homeowners to receive an annual mortgage insurance premiums reduction. For most new FHA-backing mortgages homeowners would have seen .25 percent reduction. Mortgages worth more than $625,000 would have seen a larger reduction of .45 percent.

After Trump was sworn in, HUD announced the suspension via Twitter.

The purpose of the rate reduction was to spur home-buying among consumers, especially those who don’t have the full 20 percent down payment to avoid mortgage insurance.

Click here to view FHA original announcement of the mortgage premium reduction program.

Click here to view HUD announcing the suspension of the program.

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