Patrick J. Toomey

HUD suspends FHA mortgage insurance rate cut an hour after Trump takes office

HUD suspends FHA mortgage insurance rate cut an hour after Trump takes office

An hour after Donald Trump assumed the presidency Friday, his administration indefinitely suspended a pending rate cut for mortgage insurance required for FHA-backed loans, which are popular with first-time home buyers and those with poor credit.

The move by the Department of Housing and Urban Development — one of the first acts of Trump’s administration — reversed a policy announced in the waning days of the Obama presidency that would have trimmed insurance premiums for typical borrowers by hundreds of dollars a year.

Some Republicans expressed concern that the rate cut could cost taxpayers if the loans started to go sour and the Federal...

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