CHLA Renews Call For End Of Life Of Loan Premiums In The Wake Of Strong FHA Annual Report
The Community Home Lenders of America (CHLA) issued the following statement in response to FHA’s release of its annual report on FHA Mutual Mortgage Insurance Fund (MMIF):
“In light of today’s report showing continued FHA financial strength, CHLA renews its call for an end to the FHA practice of charging premiums for the life of the loan,” said Scott Olson, Executive Director for CHLA.
“Borrowers who get an FHA loan down to 78% LTV deserve a dividend from FHA’s strong performance – especially since they have paid premiums more than 3 times the actuarial loan risk by that point.”
FHA initiated its Life of Loan premium policy in 2013, in the wake of the 2008 housing crisis – but has rebounded exceptionally strongly since then, as measured in its MMIF performance and capital numbers.
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