Quote below. Read the full article here: The case for (and against) lowering FHA premiums
The Housing Policy Council, which represents mortgage lenders and servicers, commended Fudge’s stewardship of the MMI fund, and the decision to delay further consideration of a MIP adjustment until more is known about the outcomes of the FHA loans currently in forbearance or seriously delinquent.
Matt Douglas, vice president of mortgage policy at the Housing Policy Council, said that once the share of seriously delinquent borrowers has been reduced, HUD could then take a more holistic look at its mortgage insurance premiums, including the upfront fee and the annual fee for the life of the loan.
But now, he said, when home prices are rising precipitously, is not the time for FHA to lower the mortgage insurance premium.
“FHA has a key role as a countercyclical player,” said Douglas. “When the mortgage market is struggling, they stay in the game.”