CAR calls on HUD, FHA to cut mortgage insurance premiums

the California Association of Realtors issued a statement in response to the Department of Housing and Urban Developmentannouncement of the state of Federal Housing Administration Mutual Mortgage Fund.

“The CAR continues to support the actions taken by HUD and FHA during the COVID-19 crisis to help homeowners and struggling during the pandemic,” said CAR President Dave Walsh, vice president and director of the Compass office in San Jose. “Recognizing that the FHA plays a central role in providing housing opportunities for families across California, the RCA has for years called on the FHA to lower the mortgage insurance premium. This will provide greater home ownership opportunities and ensure that home buyers who use FHA loans are not. overpay their mortgages. “

“As the nation emerges from this crisis, the CAR will continue to call on HUD and FHA to lower the mortgage insurance premium so that the recovery is fair to all who want to access homeownership as rates fall. interest continue to float to historically low levels. “

On March 30, HUD Secretary Marcia L. Fudge released a declaration on the quarterly report to Congress on the programs of the FHA Mutual Single Family Mortgage Insurance Fund.

“HUD is obligated to provide a quarterly report to Congress on the FHA insurance program and to provide detailed information on the composition, credit quality and financial condition of the program. I take this opportunity to discuss the state of the FHA insurance program and the health of the mortgage mutual one year after the health and economic fallout of COVID-19, ”Fudge said in his statement.

“The health of the FHA Mortgage Mutual Insurance Fund has remained resilient despite the financial challenges facing homeowners with FHA insured mortgages in 2020. The fund stands at over $ 80 billion and remains well above the minimum 2% capital reserve required. During the pandemic, the FHA portfolio experienced increased levels of seriously delinquent loans and a high level of forbearance loans. We continue to monitor mortgage yield trends within our portfolio, particularly with respect to homeowners who are experiencing financial hardship as a result of the pandemic. “

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