Financial Industry Alert | January.23.2017
On its first day in office, the Trump Administration focused on the mortgage industry and on protection of taxpayers from mortgage losses by announcing the suspension of the Obama Administration's recent reduction of FHA annual mortgage insurance premium rates.
"FHA is committed to ensuring its mortgage insurance programs remain viable and effective in the long term for all parties involved, especially our taxpayers. 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." Mortgagee Letter 2017-07.
A sign of things to come? A harbinger of steps to be taken to further protect taxpayers from the credit risk assumed by Freddie Mac and Fannie Mae in their mortgage purchase programs?