HUD suspends it indefinitely The Federal Housing Administration-insured (FHA) two weeks ago stated that they were in the process of cutting mortgage insurance premiums on FHA loans. This insurance is […]
Decisions made in Tallahassee can affect South Florida Market All eyes are fixated to the northern realms of the state. What seems to be a million miles away can […]
HUD suspends it indefinitely
The Federal Housing Administration-insured (FHA) two weeks ago stated that they were in the process of cutting mortgage insurance premiums on FHA loans. This insurance is added onto loans to help offset the cost of loan defaults.
The projected cut was scheduled to go into effect on April 27th but is has been put on hold for the foreseeable future. Not too long after President Trump’s inauguration, HUD distributed Mortgagee Letter 2017-1 suspending the new rule.
When FHA had first released the cut, many in the real estate business championed the sentiment. They felt that the cost measure would help more potential buyers meet the debt to income ratio needed to purchase a property.
An ATTOM Data Solutions analysis discovered that the average borrower would have saved around $446 every year if the rate cut would have gone through as planned.
There is, however, a chance that Trump’s administration will revisit this matter soon or they may just allow it to sunset. The head of the Department of Housing and Urban Development (HUD), Dr. Ben Carson, has agreed to put effort into reviewing the matter but has not come to any conclusions as of yet.
This is not the first time the FHA has raised or lowered costs. After the Great Recession, they increased the monthly premiums all the way up to 90 basis points. Then again in 2013 the FHA increased them again over credit risk concerns and to strengthen their Mutual Mortgage Insurance Fund (MMIF).
Decisions made in Tallahassee can affect South Florida Market
All eyes are fixated to the northern realms of the state. What seems to be a million miles away can dramatically affect life here in southern Florida.
The 2017 legislature is currently meeting, and local economists are keeping close tabs on the topics to be discussed.
Some of the issues include workers’ compensation in which lawmakers will discuss recent court rulings that make some aspects unconstitutional, the death penalty that has been on hold since 2016, and the potential to expand legalize gambling into eight additional counties.
Key issues such as how to go about implementing the voter-approved marijuana initiative, scaling back regulations in the healthcare industry, and discussions over the burden of proof in the “stand your ground” gun control laws will also be hashed out.
A great deal of the focus is on the state budget which includes over $600 million in tax cuts and increased spending for schools and hospitals, as well.
Lastly, the governor is looking to spend $160 million to increase tourism and small business initiatives to further grow the economy in Florida.
South Florida would be a huge benefactor to increased spending. The local economy depends on money brought in from tourism and the image of having a strong marketplace.
As businesses see success with more visitors and more money pours into the pockets of local employees, it should help sustain the steady housing market.
A thriving economy also helps attract investors, both domestic and foreign. Both would help prop up and grow real estate prices and sales.
All attention seems fixed on Tallahassee to see if positive moves can be made to better the State of Florida and build and sustain its local markets.
FHA Mortgage Insurance Premium Reduction= Gone
UncategorizedHUD suspends it indefinitely The Federal Housing Administration-insured (FHA) two weeks ago stated that they were in the process of cutting mortgage insurance premiums on FHA loans. This insurance is […]
Florida Legislative Climate Set To Change?
UncategorizedDecisions made in Tallahassee can affect South Florida Market All eyes are fixated to the northern realms of the state. What seems to be a million miles away can […]