SOURCE: Mortgage News Feed
HUD Commissioner Carol Galante has raised the cost of FHA MIP (Mortgage Insurance Premiums), past the common sense cost/benefit paradigm for most consumers, who have responded by stepping back from the housing market. That is a fact, with interest rates still at historical lows; FHA loan volume is down 32% from last year. Coincidently, FHA MIP costs have increased to the highest level in the history of FHA mortgage financing.According to the Commissioner, one has nothing to do with the other. Bloomberg.com contributor Kathleen Howley offered this headline on 05/07/2014; Americans Shut Out of Housing as FHA Fees Jump: Mortgages.
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