Real estate professionals who had delayed closings to take advantage of the Federal Housing Administration's (FHA) annual mortgage insurance premium (MIP) cuts have to tell clients, "Just kidding." Eleven days after FHA announced its plan to reduce MIPs by a quarter of a percentage point, and an hour after President Trump was sworn in, the Department of Housing and Urban Development announced in a letter that cuts were "suspended indefinitely." In response to the news, real estate industry players who were optimistic about boost for low- to moderate-income buyers have expressed a range of disappointment, understanding and commitment to avoiding disruption for clients and lenders who were anticipating the reduction, which was set to take effect Jan. 27 before the suspension. Many are also reflecting the sentiment of "no big deal -- let's carry on." National Association of Realtors: 'We're disappointed' According to the National Association of Realtors (NAR), the MIP reductio...
- An hour after President Trump was sworn in, HUD issued a letter indicating the suspension of FHA's annual mortgage insurance premium reduction.
- The National Association of Realtors along with the California Association of Realtors both expressed their disappointment in the suspension, and its potential impact on homebuyers.
- Real estate professionals could be experiencing delays for those clients who had planned closings around the Jan. 27 reduction implementation, but many are not overly worried about the impact of the suspension on their market.