HUD Suspends Cut in FHA Mortgage Insurance Premiums

In one of its first actions after the inauguration on Friday, the Trump administration suspended a previously announced reduction in mortgage insurance premiums paid by borrowers with new Federal Housing Administration-insured mortgages and refinances. The indefinite suspension took effect immediately.

Under the now-canceled reduction — scheduled to take effect on Jan. 27 — the insurance premium for FHA-backed loans would have fallen 25 basis points to 0.55 percent for loans with terms longer than 15 years and loan-to-value ratios of 95 percent or less. Many Republicans had panned the reduction, announced just days before the end of the Obama administration, as introducing too much risk into the FHA-insured mortgage system.