The Department of Housing and Urban Development (HUD) today announced it has suspended the reduction of Mortgage Insurance Premiums, effective immediately.
HUD sent out an announcement just one hour after incoming President Donald Trump was sworn in on Friday, Jan. 20, stating that the cuts have been suspended indefinitely.
In its official announcement, HUD stated that the FHA will issue a subsequent Mortgagee Letter at a later date, should this policy change.
“FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers,” the letter states. “As such, more analysis and research are deemed necessary to assess future adjustments while also considering potential market conditions in an ever-changing global economy that could impact our efforts.”
Right before leaving office, the Obama administration cut FHA mortgage insurance premiums, marking the second time it reduced premiums in two years.
However, after Ben Carson, Trump’s choice to lead the Department of Housing and Urban Affairs, appeared last week before the Senate Committee on Banking, Housing, and Urban Affairs, the likelihood that the cut would take effect on Jan. 27 quickly diminished.
At the time, Carson said that the Trump administration plans to “really examine” the Obama administration’s decision to cut FHA premiums before determining a course of action.