Trump's first act: Increase Mortgage Insurance Premiums (1 Viewer)

TechDawg09

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One of his first executive orders on his first day to was to remove a cut in the FHA mortgage insurance premium rate (a cut that was approved by the Obama Administration in recent weeks), thus removing an expected drop in mortgage payments for a large number of middle and working class Americans.

Just curious as to why this was at the top of his priority list, given his constant rhetoric that he is in office to help average Americans.

Soon after Donald Trump was sworn in as president, his administration undid one of Barack Obama’s last-minute economic-policy actions: a mortgage-fee cut under a government program that’s popular with first-time home buyers and low-income borrowers.

The new administration on Friday said it’s canceling a reduction in the Federal Housing Administration’s annual fee for most borrowers. The cut would have reduced the annual premium for someone borrowing $200,000 by $500 in the first year.
https://www.bloomberg.com/politics/...ration-overturns-obama-s-fha-mortgage-fee-cut
 

jazzjack

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These are generally lower credit borrowers with lower down payments and high levels of default. Fha in reality created the subprime mortgages. Everyone pays for these defaults. This is a smart move to not lower the premiums. This is not an increase but an elimination of a lower proposal.
 

soggymoss

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Thanks to Obama you have to pay the insurance for the life of loan. Before his term once you were below I believe 78.5% value, the insurance dropped off.
 

NewOrleansFan

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Thanks to Obama you have to pay the insurance for the life of loan. Before his term once you were below I believe 78.5% value, the insurance dropped off.
Sorry but this is wrong. You are confused between PMI and MIP (private mortgage insurance vs. mortgage insurance premium).
 

NewOrleansFan

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These are generally lower credit borrowers with lower down payments and high levels of default. Fha in reality created the subprime mortgages. Everyone pays for these defaults. This is a smart move to not lower the premiums. This is not an increase but an elimination of a lower proposal.
FHA didn't create the subprime mortgage. It has been around for a while.
 

efil4stnias

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Sorry but this is wrong. You are confused between PMI and MIP (private mortgage insurance vs. mortgage insurance premium).
Oh no...see he works off alternative facts.

But it's just another case showing Trump supporters really haven't a clue. They spout off, hope that no one is paying attention.

Until someone pays attention. Oops. Lol

It's gotta be embarrassing for them.

So I felt bad...maybe he will read this.

http://www.bankrate.com/finance/mortgages/removing-private-mortgage-insurance.aspx

As for MIP...

http://themortgagereports.com/7570/fha-mip-cancel

See? So what he did was make it a bit harder for home buyers going FHA (requires lower down payment by a lot) route.



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TechDawg09

TechDawg09

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These are generally lower credit borrowers with lower down payments and high levels of default. Fha in reality created the subprime mortgages. Everyone pays for these defaults. This is a smart move to not lower the premiums. This is not an increase but an elimination of a lower proposal.
FHA has nothing to do with subprime loans, other than the fact that it insures mortgages. Subprime loans were created and sold by lenders.

Also, when a rate is supposed to go lower, and someone else raises that rate - it is by definition an increase. Trump campaigned on the basis that he was going to put money and power in the hands of normal people instead of the government. And then one of the very first things he does is to take more money from everyday people and put it in the hands of the government.

I'm sure there are plenty of legitimate arguments for and against this rate increase. It's just awful fishy that this was among his top priorities, when it goes against the very core of his campaign message.
 

NewOrleansFan

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Oh no...see he works off alternative facts.

But it's just another case showing Trump supporters really haven't a clue. They spout off, hope that no one is paying attention.

Until someone pays attention. Oops. Lol

It's gotta be embarrassing for them.

So I felt bad...maybe he will read this.

How To Get Rid Of PMI - Private Mortgage Insurance | Bankrate.com

As for MIP...

How To Cancel FHA Mortgage Insurance Premiums (MIP / PMI)

See? So what he did was make it a bit harder for home buyers going FHA (requires lower down payment by a lot) route.



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78.5% is a very specific number probably came from a media source. I would reconsider where I get my information if I was him.
 

jazzjack

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FHA has nothing to do with subprime loans, other than the fact that it insures mortgages. Subprime loans were created and sold by lenders.

Also, when a rate is supposed to go lower, and someone else raises that rate - it is by definition an increase. Trump campaigned on the basis that he was going to put money and power in the hands of normal people instead of the government. And then one of the very first things he does is to take more money from everyday people and put it in the hands of the government.

I'm sure there are plenty of legitimate arguments for and against this rate increase. It's just awful fishy that this was among his top priorities, when it goes against the very core of his campaign message.
You are 100% incorrect there. Agreed Fha didn't sell and insure the subprime mortgages but their acceptance of lower level credit was the impulse for subprime. The early subprime mortgages were lower ltv loans I.e. 75%. Fha starting doing some of those same loans at 100 to 106% at a lower rate of interest. The original subprime was not done as a replacement for long term loans and rarely defaulted. The government that blamed all the wall street bankers was in fact quite responsible for a lot of the mortgage banking crisis. I'm sure very few of us are surprised by this.
 

soggymoss

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Sorry but this is wrong. You are confused between PMI and MIP (private mortgage insurance vs. mortgage insurance premium).
Yes you are correct. I remember a thread from the other day where they were discussing PMI, so I do apologize for getting the two mixed up (I'm in the process of buying my first home and with the lender talking about all this PMI,imp,map,and whatever the hell else other initials it's a bit confusing).
 

soggymoss

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Oh no...see he works off alternative facts.

But it's just another case showing Trump supporters really haven't a clue. They spout off, hope that no one is paying attention.

Until someone pays attention. Oops. Lol

It's gotta be embarrassing for them.

So I felt bad...maybe he will read this.

How To Get Rid Of PMI - Private Mortgage Insurance | Bankrate.com

As for MIP...

How To Cancel FHA Mortgage Insurance Premiums (MIP / PMI)

See? So what he did was make it a bit harder for home buyers going FHA (requires lower down payment by a lot) route.



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To be fair though he stopped the cut to PMI, not MIP. The OP has them confused, even in the article it says the FHA PMI.
 

efil4stnias

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Yes you are correct. I remember a thread from the other day where they were discussing PMI, so I do apologize for getting the two mixed up (I'm in the process of buying my first home and with the lender talking about all this PMI,imp,map,and whatever the hell else other initials it's a bit confusing).

And if you are going FHA route ( putting less than the traditional 20% down ) your payment just went up.

So your "thanks" was a tad misplaced, no?

Sent from my SAMSUNG-SM-G891A using Tapatalk
 

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