Lower MI BIG WIN for FHA

11/02/2015
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The results are in and since FHA dropped their MI by 50 basis points, they’ve done a ton more business.  Will they drop again?

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17 thoughts on “Lower MI BIG WIN for FHA”

  1. Noel Cookman says:

    Isn’t the phrase “you can’t have it both ways” more apropo as stated TO Obama rather than ABOUT criticism of Obama’s lowering of FHA MI? Obama and the democrats are the ones who argue that lowering taxes do not increase revenue. Even Ben Stein made that case on Saturday.

    Maybe I wasn’t paying attention but I don’t remember a lot of criticism from mortgage professionals about the lower MI. What I DO remember is a lot of criticism when it was increased to 1.30/1.35.

  2. Great Story!! Excellent info, so it Government cuts taxes could spur growth!! You would think the Republican Candidates would jump on this!! Kind of what Reagan did!! Way to go Obama, I knew you had a little Republican in you.

  3. Rob Aubrey says:

    Is this a liberal attempt to say that the Oama administration is cutting taxes to spur economic growth?

    What an effing joke.

  4. Tom Wilbanks says:

    If the shoe fits………..

  5. Seth Wilcock says:

    What about a higher UFMIP and no monthly FHA MI premium if the borrower completes a state approved home buyer education class and mandatory residual income calculation? Theres a reason VA is the lowest defaulting mortgage in the country. Maybe HUD should consider that for FHA?

  6. Dora Griffin says:

    Maybe, someone will finally say President Obama has done something good. Lowering MI was the only way to get more business. And, frankly with the up front MI they should go back to .55% monthly. Then the deals would make sense.

  7. marcus says:

    Lowering taxes beyond a point does not increase revenue. Even Paul Ryan admits to this fact. That card was played in the 80’s when Reagan lowered the marginal tax rate from 70% to 40% and again down to 36% which did indeed increase revenue. Now taxes are even lower than under Reagan or Clinton (when the budget was balanced). Taxes are the lowest since the 1950’s. A Wall Street Journal survey in 2014 showed that the people complaining the loudest about taxes were in fact paying the lowest tax rates of their lives. Tribal politics muddles the mind. Facts get lost in ideology…

  8. John Workman says:

    The lower the premium, the more savings for borrowers, the more business for the industry, that much better for the economy. Don't need to be a genius to figure this one out.

  9. Scott Davis says:

    But when Obama took office, wasn't the factor .5 and .55? Didn't they steadily climb during his administration to 1.35? And yes, then his administration dropped them to the current levels, but isn't that like a jewerly store marking up prices 200% and then advertising 50% a off price…?

  10. Scott Davis says:

    What the cuts to the premium did was create more exposure to the "prime" borrowers. If your credit is above 700 and you have 5% down, why not go conventional? Makes much more sense. By lowering the monthly it made FHA more attractive to more borrwers, hence more business being sent FHA's way. Not rocket science…

  11. Dan says:

    Marginal tax rates have nothing to do with other taxes levied. When taxes were dropped to 40% in the ’80’s you saw an increase in spending. Reagan said the biggest mistake he made was terracing taxes – when they dropped to 36% (one year later), there was a massive increase in GDP. When Coolidge, Kennedy, Clinton and Bush dropped taxes, spending increased. Unfortunately, most of them increased government size also. According to NAMB, there are 54 basis points in G-Fees!!

  12. Ruben Estrada says:

    It was under the Obama administration that the monthly M.I.was raised from 0.55% to 1.350% so “he” lowered or cut the same actual fees that he raised himself. So I guess he deserves a “pat” on the back, yeah right!
    How many people are renting now instead of owning because they couldn’t buy due to the increase in the monthly M.I.? That was when the prices were low, now they’re priced out again that prices are up. Ridiculous.

  13. FYI. The second oldest motorcycle club in the US is the San Francisco Motorcycle Club, founded in about 1904 and still very ative today. You can get a peak at them on the recent Jay Leno's Garage show. Very cool. Pay particular attention to the Hymn they sign at the induction of a new member, this time Jay Leno.

  14. Rita Marie says:

    Yes, it was great that the monthly MI went down; but making if for the life of the loan with minimum down payment was and is theft. Just stating an opinion.

  15. Would be even better if FHA raised their County lending limits to what they were a few years ago, so that even more people could take advantage of these lower MIP fees. With ever-increasing home values, many first time buyers are not able to buy with FHA and many who did buy a couple of years ago with FHA aren't able to take advantage of the savings because of lowered loan limits.

  16. we can do 3.5% d/paym FHA on Multi Families not Conventional

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