FHA Mortgage Insurance Too High

In a recent letter to HUD, NAR’s president wrote, “FHA’s current policy to maintain lifetime annual mortgage insurance premiums for loans with over 90 percent LTV at origination penalizes any homebuyer without the means to put down a larger down payment. This goes against the core of FHA’s mission, to provide fair homeownership opportunities to worthy borrowers who are overlooked by conventional lenders.” The letter urged the FHA to eliminate the life of loan mortgage insurance premium requirement and reduce the annual mortgage insurance premium level.