2,684,109
With respect, this is about MIP, not interest rates.
Trump did not sign it, an Obama holdover (Genger Charles, General Deputy Assistant Secretary for Housing) signed the mortgage letter.
This was done after Senator Pat Toomey (Republican) and others were concerned that FHA reserves are already dangerously low ("It was as recently as 2013 that FHA needed a bailout," said Toomey).
Here is the Mortgage Letter, dated today, January 20
-
Debbie Laity
Cedaredge, CO
-
Ryan Huggins - Thousan...
Thousand Oaks, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Frank Rubi
Metairie, LA
-
Susan Laxson CRS
La Quinta, CA
-
Michael Setunsky
Woodbridge, VA
-
Carol Williams
Wenatchee, WA
-
Kevin J. May
Hobe Sound, FL
-
Tony and Suzanne Marri...
Scottsdale, AZ
-
Nina Hollander, Broker
Charlotte, NC
-
Endre Barath, Jr.
Beverly Hills, CA
-
Nathan Gesner
Cody, WY
5,104,931
I do not believe that President Trump signed an executive order to this effect as yet. He signed four of them yesterday and this is not one of them. Where did you get this information?
-
Fred Griffin Florida R...
Tallahassee, FL
-
Frank Rubi
Metairie, LA
-
Katina Hargrove 352-55...
Eustis, FL
-
Eve Alexander
Tampa, FL
-
Kevin J. May
Hobe Sound, FL
-
Harry F. D'Elia III
Phoenix, AZ
-
Roy Kelley
Gaithersburg, MD
1,622,432
My question is why Mr. O. waited for 8 years till now to make any changes in it?
-
Sam Shueh
San Jose, CA
-
Nathan Gesner
Cody, WY
-
Fred Griffin Florida R...
Tallahassee, FL
-
Nina Hollander, Broker
Charlotte, NC
206,670
The law calls for a 2% reserve to keep the program healthily funded. That surplus has dropped to on 2.23% dangerously low to ensure it's safety. I think the new administration will take a closer look before moving forward. As to it will hurt the markets my feeling is no. Buyer are told what their payments will be and the say yes or no, I feel interest rate will heart more and be more visible to the general public.
-
Roy Kelley
Gaithersburg, MD
-
Endre Barath, Jr.
Beverly Hills, CA
-
Nathan Gesner
Cody, WY
-
Fred Griffin Florida R...
Tallahassee, FL
5,216,398
If $500 dollars on average derails a purchase, a purchase may be a stretch that should not be taken!
-
Melissa Jackson REALTOR
Azle, TX
-
Frank Rubi
Metairie, LA
-
Mimi Foster
Colorado Springs, CO
1,543,817
Rates are still historically low.
My first house 1989 was double digits and my last purchase in 2007 was 7%.
-
Roy Kelley
Gaithersburg, MD
-
Endre Barath, Jr.
Beverly Hills, CA
-
Nathan Gesner
Cody, WY
1,712,676
Negative and expect more of this.
-
Gloria Valvasori, Accr...
Mississauga, ON
-
Roy Kelley
Gaithersburg, MD
-
Nathan Gesner
Cody, WY
823,579
I agree with Fred Griffin
-
Frank Rubi
Metairie, LA
-
Fred Griffin Florida R...
Tallahassee, FL
5,049,183
I think Fred Griffin 's got it. TIme will tell
-
Frank Rubi
Metairie, LA
-
Fred Griffin Florida R...
Tallahassee, FL
1,466,207
Nathan Gesner Fred Griffin has this one.
-
Frank Rubi
Metairie, LA
-
Fred Griffin Florida R...
Tallahassee, FL
2,178,603
Thanks Fred Griffin for clarifying that! Isn't the knowledge base on AR awesome?
-
Frank Rubi
Metairie, LA
-
Fred Griffin Florida R...
Tallahassee, FL
3,416,038
It did not come from Trump. I read it and studied it. I feel after reading all the pros and cons that there was no need for a reduction. For what you get, it is already low. FHA needs to bolster itself not cut itself. They still do not know how to handle foreclosures and should put their effort on that
-
Frank Rubi
Metairie, LA
-
Fred Griffin Florida R...
Tallahassee, FL
3,071,489
Fred Griffin nailed this one!
-
Fred Griffin Florida R...
Tallahassee, FL
-
Roy Kelley
Gaithersburg, MD
6,393,404
I think that .25% is not enough for anyone to get excited about.
-
Fred Griffin Florida R...
Tallahassee, FL
-
Roy Kelley
Gaithersburg, MD
911,338
It will have a negative effect on a small % of buyers. There are other programs available that help many first time buyers. If a buyer of a $400,000.00 home using FHA can't afford the additional $100.00 per month, maybe they should not buy, or buy a lower priced property. I'm not going to worry about it.
-
Frank Rubi
Metairie, LA
-
Roy Kelley
Gaithersburg, MD
4,572,183
There is no shortage of "talking heads" and "self-proclaimed experts" out there....time will tell...which I will likely repeat often in the next four years.
Unfortunately, FHA is not a large segment of our buyer pool in most of the areas I cover because of the affordability factor. It's difficult for them to be competitive when there are multiple offers with conventional financing or all cash transactions.
-
Fred Griffin Florida R...
Tallahassee, FL
-
Roy Kelley
Gaithersburg, MD
4,456,506
My first reaction is we were doing fine without the decrease... then we got all excited about the decrease we will adjust... I suspect it will be reevaluated again after all this is the 7th change if I am not mistaken in the past year or so...Endre
-
Fred Griffin Florida R...
Tallahassee, FL
-
Roy Kelley
Gaithersburg, MD
577,750
If the changes are such that it now prevents home ownership to those who otherwise may have purhcased a home, it is negative in my view.
-
Roy Kelley
Gaithersburg, MD
-
Nathan Gesner
Cody, WY
2,224,473
321,564
This is all over my social media news feed! I'm not familiar with all the information. Fred Griffin explains this very well. I believe it's just fuel for people to keep negativity flowing. So many people don't know what they are talking about. If a buyer is that close to losing a purchase over MIP, maybe they should not put themselves in this situation.
-
Fred Griffin Florida R...
Tallahassee, FL
864,658
Fred Griffin nailed this one.
-
Fred Griffin Florida R...
Tallahassee, FL
1,502,998
Looks like Fred Griffin has detailed info.
-
Fred Griffin Florida R...
Tallahassee, FL
5,005,642
Thanks Fred Griffin for setting the record straight.
-
Fred Griffin Florida R...
Tallahassee, FL
3,345,091
Fred Griffin has covered the facts and clarification on this.
-
Fred Griffin Florida R...
Tallahassee, FL
5,583,278
2,182,552
Trump is very Pro-Real Estate , it could be just temporary
-
Frank Rubi
Metairie, LA
151,633
It seemed like a hasty decision on President Obama's part to do that right before leaving office. I'm glad that President Trump rescinded it in order to have time to further evaluate. Some will see it as negative on President Trump's part, but I believe it to be prudent.
-
Fred Griffin Florida R...
Tallahassee, FL
142,796
4,800,082
It will have a negative effect on affordability for these products.
-
Roy Kelley
Gaithersburg, MD
4,434,127
1,617,916
1,157,785
4,319,419
William Piotrowski - I think it will have positive effect.
-
Roy Kelley
Gaithersburg, MD
5,772,575
Nathan,
I have no idea, will wait and see. A
-
Roy Kelley
Gaithersburg, MD
5,868,554
I have a buyer that was excited to have a reduction, which changed one hour after Trump was inaugurated.
1,725,996
Positive in the long run. People need to put more 'skin in the game' to insure we do not experience another real estate meltdown.
763,883
No affect except for those that have their payments changed after receiving an estimate in the gap.
3,986,258
4,936,677
Not a fan of it but it is what it is. Most snd time buyers are conventional loans,
1,683,912
3,988,007
I think it is smart to hold up and do an thorough evaluation of the funds before making changes. There will be lots of changes coming in the future.
2,781,173
1,239,901
In our area sellers prefer conventional high down as homes may not appraise to the overpaid value. Condition is another issue.
For home owner accept a FHA loan in SFBA can be risky because of its limitations.
599,274
All major media reported on this yesterday. It is not fake news. The Assistant Deputy Secretary of Housing (or something like that) announced it but the order was clearly given by President Trump, the only person capable of reversing an existing executive order.
My thoughts. First, Obama signed his executive order on January 9th so there hasn't been time for it to benefit anyone. Second, the order reduced FHA mortgage interest by 0.25% which means a reduction of less than $30 a month on a $200,000 purchase. Is that really significant enough to prevent anyone from buying a home?Third, FHA is not in a position to be making cuts when they had to be bailed out just three years ago. I think it was a prudent decision.
536,943
7,836,134