Washington, February 16, 2017 – (RealEstateRama) — House Financial Services Committee Chairman Jeb Hensarling (R-TX) said today’s announcement that Federal Housing Administration mortgage delinquencies jumped at the end of 2016 shows President Trump made the right decision to suspend and review the outgoing Obama Administration’s lowering of FHA mortgage insurance premiums.
“Essentially as he was walking out the White House door and heading to his kitesurfing vacation in the Caribbean, President Obama put hardworking taxpayers at greater risk of another bailout. Thankfully, President Trump immediately recognized this danger and took decisive action on his first day in office. Lowering premiums at this time was a big mistake. The sudden increase in delinquencies makes it clear that President Trump was absolutely right to undo the previous administration’s irresponsible action.
“It was just three years ago that taxpayers had to spend $1.7 billion to bail out the FHA. To be successful going forward, the FHA must be fiscally sound, with a clearly defined mission, to ensure homeownership opportunities for creditworthy first-time homebuyers and low-income families. Lowering FHA premiums at this time was counterproductive to achieving these goals and put the American taxpayer at greater risk. We need market-based sustainable rates.”