A fee reduction was set to go up for homeowner’s Federal Housing Administration loans, however, that is no longer expected to happen as President Trump has suspended the fee cut.
The Trump administration have deemed that more research is necessary for the order, which Obama had given the green light to. Many critics of this move have warned that it could leave homeowner’s responsible if another housing crisis were to arise. On the other hand, some analysts say that the housing market is stable and the cut was needed, although the order doesn’t totally state why it was necessary.
When homeowners take out loans, they agree to pay fees into the FHA’s reserve fund to cover losses on bad loans, and those fees had increased when the housing market crashed. Over the years, the fees had gradually decreased, and the Obama administration stated that it was at a level that no longer needed these fees and it was high time to allow homeowners to start saving more. The Trump administration disagreed with this order.
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