January 21, 2017
The Department of Housing and Urban Development said Friday that the reduction to the annual mortgage insurance premiums borrowers pay when taking out government-backed home loans has been "suspended indefinitely."
On Friday night, White House Chief of Staff Reince Priebus released a memorandum to all executive departments and agencies to freeze new and pending regulations from the previous administration.
The cut, at a quarter of a percentage point, would have saved homeowners an average of $500 this year, according to the Federal Housing Administration.Borrowers with larger home loans would have seen an even bigger drop in their premium rate.
The mortgage-fee reduction was originally announced January 9 and was supposed to go into effect on January 27.
On Friday afternoon, Senate Minority Leader Chuck Schumer said the president is undercutting his inaugural message. During his opening statement on the Senate floor, he asked Trump to reverse the suspension of the rate cut.
"What a terrible thing to do to American homeowners," Schumer said, according to his prepared remarks. "President Trump, with the flick of a pen, ended that new policy, making it harder for Americans of modest means to obtain their piece of the rock, the American dream -- home ownership."
During his confirmation hearing for HUD secretary last week, Ben Carson, said former HUD Secretary Julián Castro did not reach out to him about the rate cut.
"I too, was surprised to see something of this nature done on the way out the door, [more...]