The Honorable Marcia L. Fudge
U.S. Department of Housing and Urban Development
451 Seventh Street, SW
Washington, D.C. 20410
Dear Secretary Fudge,
The United States housing market is facing rising mortgage interest rates and the risk of increased unemployment. FHA will play a key role in making mortgage money available to homebuyers and keeping FHA insured homeowners in their homes.
At this critical time, we urge you to act on two urgent measures:
Lower the FHA Mortgage Insurance Premium by 25 to 35 basis points. This will increase the affordability of FHA insured mortgages. As you know, FHA is the most common mortgage for people of color in the United States and increasing the band of affordability will keep the door of homeownership for more people.
End the life of loan requirement on the FHA Mortgage Insurance Premiums. This will end a wealth draining burden for lower downpayment homeowners. This will also reduce the homeowner’s monthly payment, which will help them weather any potential economic downturn. One lesson we clearly learned from the foreclosure crisis is that lower monthly house payments prevent foreclosures. And this will have a positive impact on homeowners of color and help them build wealth.
We appreciate all the important work HUD has been doing to address homeownership opportunity and stability, especially with the lens on equity. We look forward to working with you and your team to continue to support America’s housing consumers.