Spike in FHA Delinquencies Shows President Trump Right to Suspend Last-Minute Obama Move

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.

Financial Services Committee

“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.”

SHARE
Financial Services Committee

The Committee oversees all components of the nation's housing and financial services sectors including banking, insurance, real estate, public and assisted housing, and securities. The Committee continually reviews the laws and programs relating to the U.S. Department of Housing and Urban Development, the Federal Reserve Bank, the Federal Deposit Insurance Corporation, Fannie Mae and Freddie Mac, and international development and finance agencies such as the World Bank and the International Monetary Fund.

The Committee also ensures enforcement of housing and consumer protection laws such as the U.S. Housing Act, the Truth In Lending Act, the Housing and Community Development Act, the Fair Credit Reporting Act, the Real Estate Settlement Procedures Act, the Community Reinvestment Act, and financial privacy laws.

Contact:

House Financial Services Committee
Democratic Staff
2129 Rayburn House Office Building,
Washington, DC 20515
Phone: (202) 225-4247
Fax: (202) 225-6952 

Previous articleULI Greenprint Center and Measurabl Collaborate to Drive Sustainable Building Performance
Next articleNorton Presses Aircraft Engine Manufacturer on When Quieter Engines Will Be Implemented to Help Reduce Airplane Noise