Trump scraps FHA fee reduction for poor homebuyers

New HUD Secretary Ben Carson had criticized Obama's move

TRD New York /
Jan.January 20, 2017 04:30 PM

Ben Carson and Donald Trump (Credit: Getty Images)

Shortly after being sworn into office, Donald Trump’s administration overturned the Obama administration’s decision to lower the cost of buying a home for low-income Americans.

Last week, the outgoing Obama administration had announced that the Federal Housing Administration, which insures mortgages for those with a weak credit score, would lower its fees from 0.85 to 0.6 percent as of Jan. 27.

The U.S. Department of Housing and Urban Development, which oversees the FHA, announced the reversal in a letter to lenders Friday. It didn’t explain the move. The incoming HUD Secretary Ben Carson said during his confirmation hearing last week that he hadn’t been consulted about the fee reduction and wasn’t happy about it.

Republicans have criticized FHA fee reductions in the past, arguing that they lower the agency’s capital buffer to deal with losses. [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
Make Greenland Great Again? Trump wants to buy Arctic territory

Make Greenland Great Again? Trump wants to buy Arctic territory

Secretary of the Department of Housing and Urban Development Ben Carson (Credit: Getty Images and iStock)

“Rich people are going to get richer anyway”: HUD Secretary Ben Carson dismisses concerns that Opportunity Zones will only benefit rich people

Hamptons’ priciest summer rental to host MAGA extravaganza next month

Hamptons’ priciest summer rental to host MAGA extravaganza next month

Trump Tower at 725 5th Avenue and Donald Trump (Credit: Getty Images)

Trump Tower occupancy rates depended on who asked

Donald Trump and Michael Bloomberg (Credit: Getty Images)

Bloomberg v. Trump: Real estate edition

Donald Trump and Michael Bloomberg (Credit: Getty Images)

Bloomberg v. Trump: Real estate edition

Rotem Rosen and 502 Park Avenue (Credit: Google Maps and Getty Images)

Real estate tycoon leaves one penthouse for another

The Daily Digest - Tuesday

Court demands Trump tax returns, New MCI rules are retroactive

arrow_forward_ios
Loading...