An early move by the Trump administration to suspend a cut in Federal Housing Administration mortgage-insurance premiums could signal a more conservative approach to housing policy, reports Andrew Khouri of the Los Angeles Times.
The Department of Housing and Urban Development cited the need for further analysis to protect taxpayers in halting the policy that would have saved FHA-borrowers as much as $1,000 or more a year, writes Khouri.
However, several observers wonder if other similar moves are on the way by the new administration.
Shortly after the election, Rep. Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee, pointed to a bill his committee passed in 2013 as the “right vehicle for reform” of the nation’s housing finance system.
That bill, known as the Path Act, would have raised the minimum down payment for FHA mortgages to 5% for borrowers who are not first-time home buyers.