Two FHA Premium Changes, An End to MI Requirement?

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Posted To: MND NewsWire

The House Financial Services Committee (FSC) passed a clutch of bills this week, several of which will assist homebuyers and homeowners. Two directly affect the cost of an FHA loan. The FHA Loan Affordability Act (H.R. 3141), introduced by Dean Phillips (D-MN) would repeal the requirement that borrowers with FHA loans pay premiums on FHA mortgage insurance for the life of their loan. The bill would reinstate the previous policy which allowed borrowers to drop the insurance when the outstanding balance of their loan is reduced to 78 percent of the original value of the home. The wording of the bill appears to specifically disallow consideration of equity accrued through home price appreciation. The bill passed the committee 34 to 25. Another FHA related bill, The Housing Financial Literacy Act…(read more)

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