Within the first few hours of President Trump’s time in office, changes were made to the Federal Housing Administration (FHA) mortgage loan program. The Trump administration announced on Friday afternoon that they will be canceling former President Barack Obama economic policy actions which reduced the FHA’s annual fee for borrowers. Last week, the Obama Administration announced the reduction which would cut the insurance premium on FHA loans by a quarter of a percentage point to .60. According to Bloomberg.com, “The cut would have reduced the annual premium for someone borrowing $200,000 by $500 in the first year.”
John Taylor, President of the National Community Reinvestment Coalition, shared his disappointment with the recent announcement from the Trump administration. “This action is completely out of alignment with President Trump’s words about having the government work for the people. Exactly how does raising the cost of buying a home help average people?” While Taylor is a critique of the change, there are some who support the move. The supporters of Trump’s recent actions claim the mortgage rates would increase if the new administration hadn’t made the change.
At the end of day, if you are a small business owner a reduction of fees is always great because it saves you money. Whether it be a penny or dollar, reductions save money. While we will never know if the reductions would have a been a benefit, I am still interested to see where President Trump will lead our nation next.