NAR Joins Coalition Letter Urging Premium Reduction and Ending Life of Loan Requirement
Issue Date: February 22, 2023
On Wednesday, February 23, 2023, Vice President Kamala Harris and Housing and Urban Development (HUD) Secretary Marcia Fudge announced a 30 basis point reduction in the Federal Housing Administration’s (FHA) mortgage insurance premium (MIP). The decision to reduce the MIP comes after a strong financial performance in FHA’s capital reserve ratio, which currently stands at 11% - 9% above what is statutorily required. NAR has continuously advocated for responsibly reducing the MIP to help qualified buyers in the current market, and FHA projects this reduction will save new buyers with FHA mortgages an average of $800 in their first year of homeownership.
Contacts
Jeremy Green, jgreen@nar.realtor, 312-329-8404