One of the first acts of the Trump Administration turns out the be the repeal of the latest FHA mortgage insurance premium reduction, which was slated to go into effect Jan. 27.
The reduction, which would have cut annual mortgage insurance premiums on most FHA loans by a quarter of a percent, was announced last week by the U.S. Department of Housing and Urban Development.
The insurance premium reduction has been estimated it would save FHA borrowers about $500 this year.
In a statement issued by HUD, the Department said the reduction in premiums that was slated for Jan. 27 would be "suspended indefinitely."
More details via USA Today:
In the first hour of Trump's presidency, the U.S. Department of Housing and Urban Development sent a letter to lenders, real estate brokers and closing agents suspending the 0.25 percentage point premium rate cut for Federal Housing Administration-backed loans.
That cut would have saved home buyers about $29 a month on a $200,000 mortgage.