The National Association of Mortgage Brokers (NAMB) is urging the Federal Housing Administration (FHA) to end its policy requiring lifetime mortgage insurance on FHA loans.

NAMB argues the rule is outdated, especially since the Mutual Mortgage Insurance (MMI) Fund is in a stronger financial position with improved reserves and metrics. They believe continuing the lifetime requirement unnecessarily increases costs for borrowers, particularly first-time homebuyers and low-to-moderate income families who often rely on FHA financing.

NAMB also says eliminating lifetime mortgage insurance could lower monthly housing costs, make homeownership more affordable, and potentially increase market activity by improving lending conditions. It is important to watch closely to see how the FHA responds and what the impact could be on both borrowers and the overall housing market.

Source : https://bit.ly/4qNI7nY