Monday, January 23, 2017

Mortgage Insurance Savings for New Home Owners (Nope)

The reasons for the first action.  Why it was first:
  1. The reduction in premiums was supposed to take effect 1/27/2017 - They must fix it quick before it actually gets started.
  2. The cut reduces the government's cushion backing these mortgages. 
  3. By targeting lower-income borrowers, the composition of the risk pool is worse.
  4. They know the housing market is likely to be volatile.
  5. Does the President (or his friends) have any investment in the real estate market?

http://www.cnn.com/2017/01/23/politics/donald-trump-first-action-hud/index.html
https://www.washingtonpost.com/news/where-we-live/wp/2017/01/20/trump-takes-away-fha-mortgage-insurance-premium-cut-not-long-after-being-sworn-into-office/?utm_term=.7d8e2b515c91

Postscript: definition Divest: Deprive of power, rights or possessions. e.g. "I divested my stake in the company by making my cat the CEO."

Executive Order:
This wasn't officially an executive order.  It's just an letter countermanding an earlier order by previous HUD.
https://portal.hud.gov/hudportal/documents/huddoc?id=17-07ml.pdf

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