NAR Letter to Federal Housing Commissioner Wade Regarding FHA Premiums and Homewonership Gap

On September 8 NAR sent a letter to Dana Wade, Assistant Secretary for Housing – Federal Housing Commissioner. The letter expresses concern about the growing homeownership disparity in the U.S. between white homeowners and homeowners of color, particularly black households. NAR recognizes that the Federal Housing Administration (FHA) has tried to remedy many of the discriminatory actions taken in the past that have led directly to the current homeownership gap. The current life of loan premium requirement for low down-payment borrowers and higher premium levels continues to add to the disparity between white and minority households, as the impact of this policy disproportionately affects minority borrowers. NAR urges FHA to reduce these premiums and eliminate the life of loan requirement in order to allow minority families to achieve the American dream of homeownership.