Some analysts predicted that the Federal Housing Administration would cut its mortgage insurance premiums if its Mutual Mortgage Insurance Fund continued its growth of the last few years. On Tuesday, FHA reported that the fund did grow in fiscal 2016, further surpassing its Congressionally mandated threshold of 2% and reaching 2.32%, reports HousingWire staffer Ben Lane.

Now the question is: Will the FHA cut its premiums? According to Ed Golding, the Department of Housing and Urban Development’s principal deputy assistant secretary for housing, don’t count on it. Golding said Tuesday that the FHA is not considering cutting its mortgage insurance premiums, despite the FHA’s flagship fund showing growth for the fourth year in a row.

But several organizations think the FHA’s current plan is misguided, including the National Association of Realtors, which said Tuesday that the strength of the MMI Fund shows that the FHA can and should consider reducing its premiums and cutting the life of loan policy.

“FHA’s actuarial report shows that the fund has indisputably found its footing,” said NAR President William Brown.

“That’s good news for taxpayers, and a reflection of FHA’s sound stewardship,” Brown continued. “It’s clear from this report that FHA can continue taking responsible steps to manage their risk even as they take action to make homeownership more affordable for lower- and middle-income buyers.”

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