The Department of Housing and Urban Development is considering reducing premiums for mortgage insurance on FHA loans.

Officials at the Department of Housing and Urban Development are having daily discussions about whether to reduce the mortgage insurance premium that applies to FHA loans. Julienne Joseph, deputy assistant secretary for single family housing at HUD, provided some insight on the topic at the Mortgage Bankers Association’s annual secondary markets conference in New York. She stressed that no decision has been made about whether to cut FHA premiums, but the issue is the subject of intense analysis. “We are dotting I's and crossing T's because we want to ensure that whatever we do, that it would be impactful, that it would help as many borrowers as possible but also preserve the sovereignty of the FHA Mutual Mortgage Insurance Fund,” Joseph said. She also suggested that industry participants should “stay tuned.” “This is — if not the most pressing priority for HUD Secretary Marcia Fudge — it is definitely up there,” Joseph said.

Source: Inside Mortgage Finance