Suspended FHA mortgage insurance cuts
According to CNBC, not even a full half-hour after he was elected, Trump’s administration ordered that the Department of Housing and Urban Development suspend the reduction of FHA annual mortgage insurance premium rates. If you’re like me, you likely didn’t know what that previous sentence meant. FHA (Federal Housing Administration) loans are meant to protect lenders from suffering a loss if the borrower defaults on the loan. So, according to Market Watch, the reduction in rates, was an Obama administration attempt to make home ownership a bit easier for people because they wouldn’t have to pay such high rates to buy a home. But now that’s gone. Market Watch reports that with the cuts average borrowers would have saved $500/year. We can thank Ben Carson for this, or at least part of it, as he is the Secretary of Housing and Urban Development.