Just to prove that he is really for those wanting to buy their first home, Donald Trump has reversed an Obama administration effort to reduce the monthly cost for those new home owners.
The Trump administration has suspended a cut in fees on FHA-insured mortgages that had been set to take effect this month.
A reduction in the Federal Housing Administration’s annual mortgage insurance premium had been scheduled to take place Jan. 27. In one of the first acts of the Trump administration, the cut in premiums has been suspended indefinitely.
Ben Carson, the housing secretary nominee, had hinted at this move last week, during his confirmation hearing. He said that the Obama administration’s announcement of the premium cut had been “done on the way out the door” and that the cut would cost $5 billion next fiscal year. “That’s not chump change,” he said, “so certainly, if confirmed I’m going to work with the FHA administrator and other financial experts to really examine that policy.”
For most borrowers buying homes with down payments of less than 5 percent, the monthly mortgage insurance payments will remain $141.67 a month for a $200,000 loan. It would have fallen to $100 a month.
This action is the absolute opposite of what Trump promised if elected.