U.S. housing regulators suspend plans to cut FHA premiums
The Obama administration estimated that new FHA borrowers across the nation would have saved an average of $500 a year.
The U.S. Department of Housing and Urban Development abruptly suspended its plan to cut FHA premiums for mortgage borrowers, according to a letter issued by the department on Friday.
The reversal, which came immediately after Donald Trump was sworn in as president, did not provide an explanation, saying only the reduction in premiums that was slated for Jan. 27 would be “suspended indefinitely.”
The Federal Housing Administration announced on Jan. 9 that it would reduce the annual insurance premiums most borrowers will by pay by a quarter of a percent, saving the average homeowner $500 this year.
In San Diego County, the seemingly minor change would have more of an impact because home prices here are higher than much of the nation, saving the average borrower around $1,200 a year.
The rate change would have applied to all homes that close escrow after Jan. 27 and only to federally-backed loans.
Reuters and U-T staff writer Phillip Molnar contributed to this report.
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