MBA Praises HUD Decision to Rescind Notice of Proposed MIP Increase
Jan 9, 2008
Washington, DC (January 9, 2008) – The Mortgage Bankers Association (MBA) today applauded the US Department of Housing and Urban Development (HUD) for its decision to rescind a notice published in October 2007 that would have increased the mortgage insurance premiums (MIP) on a number of multifamily programs.
“We are grateful for the opportunity to work closely with Congress, HUD and the Administration on this important issue,” said Kieran Quinn, CMB, Chairman of the MBA. “After the Administration proposed the fee increase in its FY 2008 budget, 117 Members of the House and 38 Senators signed letters to HUD opposing the premium increase. HUD listened to those concerns as well as the 229 letters submitted by the industry stating FHA is a vital financing mechanism, particularly in the current volatile credit markets.”
MBA was also able to provide solid evidence the programs affected by the increased fee were providing affordable housing. The MBA survey, which looked at programs affected by the proposed MIP increase, found that 98% of the properties had average rents affordable to families earning 80% or less of area median family income.
Loans News