Realtors to FHA: Your Mortgage Insurance Rates Drive Buyers Away

April 2, 2014
Housing Wire 
mortgage lending news
National Association of Realtors President Steve Brown has reached out to the FHA, hoping to persuade the agency to lower its annual mortgage insurance premiums.

In a letter to FHA Commissioner Carol Galante, Brown warned that the steep costs are taking away homeownership as an option for hundreds of thousands of potential borrowers. Last year, he estimated, between 125,000 and 375,000 would-be home buyers were priced out of the market because of FHA's high insurance premiums as well as a requirement that mortgage insurance be in place for the life of the loan. Currently, Brown wrote, FHA fees represent almost 25 percent of a monthly mortgage payment.

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