US Housing and Urban Development Secretary, Julian Castro, announced in a press release that the Federal Housing Administration (FHA) will reduce annual mortgage insurance premiums for new borrowers by half a percent. While the change will be effective towards the end of January, the FHA is expected to publish a mortgagee letter specifying the new pricing structure soon. The FHA anticipates the annual premium reduction will “save more than two million FHA homeowners an average of $900 annually and spur 250,000 new homebuyers to purchase their first home over the next three years.”
Castro stated, “Since 2009, the Obama Administration has taken bold steps to reduce risks in the mortgage market and to protect customers. These efforts have made it possible to take this prudent measure while also ensuring FHA remains on a positive financial trajectory. By bringing our premiums down, we’re helping folks lift themselves up so they can open new doors of opportunity and strengthen their financial futures.” To read the full press release, visit http://1.usa.gov/1tRf4Nh.