In State of the Union, President (Quietly) Talks Huge Changes to Home Mortgage Program
The President’s State of the Union address included a proposal to address America’s largest category of consumer debt: home mortgages. The proposed lowering of the FHA mortgage insurance premium—from 1.35 percent to 0.85 percent—would be one of the most immediately impactful governance changes emerging from this high-profile speech. This change represents about $900 dollars in the pocket of every homebuyer who finances, or refinances, with an FHA mortgage in the next year alone—an estimated 800,000 people. Plus, the reduction in cost will allow an estimated 250,000 additional families to buy a home for the first time during the next three years.
Big news, right? Imagine the stampede if the President had said, “homebuyers, line up outside for your $900 checks.” Yet, if you blinked during the SOTU, you missed it; the President simply said “…things like lower mortgage premiums will make a meaningful difference in the lives of millions of families.” In fact, even if you didn’t blink, you might not have known what he was referencing.