FHA Premium Cut not about the GSEs

Julian Castro, Secretary of Housing and Urban said today
that the reduction of FHA annual premiums has nothing to do with competition
from Fannie Mae and Freddie Mac.  The 50
basis point reduction in annual mortgage premiums announced by Castro earlier
this month, is effective for loans with case numbers issued starting today.

Castro told a panel on CNBC’s Squawk Box that the rollback is about maintaining a balance between
keeping FHA’s Mutual Mortgage Insurance fund strong and fulfilling FHA’s
traditional mission of providing homeownership opportunities for first time
homebuyers and middle class families



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