The National Association of Realtors (NAR) endorsed Ben Carson. On January 30th wrote a letter to the Department of Housing and Urban Development Secretary asking the Federal Housing Administration (FHA) to reinstate the 25 basis point premium reduction. They also asked to remove the life of loan premium as soon as possible.
Many of the Obama administrations policies have been suspended and are currently under the new administrations review. The NAR wanted to assure and express their support of reinstating the premium reduction. They also expressed their concerns for the suspension and elude to the American Dream of home ownership and FHA making that possible. They concluded that the life of loan premium penalizes any homebuyer without the means to put down a larger down payment. Further more the sudden suspension has left lenders and borrowers in a lurch as they either are facing increases in the their loans or simply no longer qualifying to make that home purchase.
“The premium reduction would have reduced costs for 750,000 to 850,000 homebuyers in 2017 with mortgages backed by the FHA and would have made homeownership possible for an additional 30,000 to 40,000 homebuyers”
With pressure from the NAR, and the threat of another economic crash for housing industry, Ben Carson and our administration have a lot to decide on the future of our industry.