Premiums for FHA mortgage insurance, which is designed to protect the agency in case a borrower defaults on a loan, will be cut from 1.35% of a loan's value to about 0.85%, the White House said in a statement January 10th.
Previously, to help restore its reserves, the FHA had raised its insurance premiums and now requires borrowers to keep paying the premium for the entire life of the loan.
But the housing market's recovery has also helped push home prices higher, which is helping the agency reduce its losses when a home is foreclosed on and sold in auction. FHA said lenders have also been better at working with delinquent borrowers to help them prevent foreclosure.
Here's a LINK to the White House press office with more details.
HAMBY REALTY in Jefferson Oregon has been providing customer satisfaction to real estate clients since 1965 continuing as a family operated business by Nancy Hamby and Jeff Marcec. At Hamby Realty we specialize in serving both buyers and sellers dealing in Oregon residential real estate, farms and small acreages in and around the Willamette Valley.
