In an effort to entice first-time borrowers to become homeowners, the Federal Housing Administration lowered mortgage insurance premiums (MIP) on its loans in most cases by $800 to $900 a year in 2015. But while the volume of FHA loans increased, some industry insiders say that first-time buyers, especially millennials, weren’t convinced to jump in to the housing market, reports MarketWatch staffer Daniel Goldstein.

”We’re still not seeing those first-time home buyers going to FHA,” said Bryan Sullivan, the chief financial officer of Foothill Ranch, Calif. -based loanDepot, the second-largest online lender in the U.S. “It’s still a relatively older borrower” for FHA loans, he said. Sullivan said that the drop in FHA loan premiums simply meant that other borrowers looking for a home loan opted for the FHA product, rather than bringing additional new buyers into the market. “It’s substantially just a reshuffling of the deck,” he said.

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