Lenders Use Budget Data to Lobby FHA for Lower Premiums

March 7, 2014
American Banker 
mortgage lending news
President Obama's budget reveals that the FHA has the flexibility to lower premiums, according to the Community Home Lenders Association.

The projected 9 percent profitability over the life of a FHA-insured loan for fiscal year 2015 is "excessive," says CHLA executive director Scott Olson. He believes the agency could reduce its 1.35 percent annual premium, which has historically averaged 55 basis points. The CHLA is proposing a reduction of the fee to 75 basis points, which would still allow for a 7.25 percent profit as well as make FHA loans more affordable for home buyers, says Olson.

Realtors and lenders view the high fees charged by the FHA, Fannie Mae, and Freddie Mac as obstacles for the housing recovery, adds mortgage consultant Brian Chappelle.









Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`