The Federal Housing Administration is actively considering cutting the mortgage insurance premium — just don't expect anything soon, Commissioner Julia Gordon said at the Mortgage Bankers Association annual convention in Nashville on Monday.
"There's so many different factors we need to consider, and we haven't yet made that decision of exactly what we'll do, what magnitude will be, what the composition of it will be" Gordon said. "But directionally, I did want you to know that it is something that we're thinking about actively, [and] actively analyzing."
While professing support for an MIP cut, Gordon hinted that one is not imminent.
FHA is part of the federal government and it has to work through an 18-month budgeting cycle. Gordon pointed to the 10 months it took for her
"I am hopeful that we can do something once we have a [fiscal year] '23 budget," she commented. "Now, your guess is as good as mine when that will be."
In the
"MBA appreciates having Commissioner Gordon speak to our members at our Annual Convention," according to a statement from a spokesperson. "We will continue to call for a reduction in the MIP to provide meaningful relief to FHA-insured borrowers."
The Community Home Lenders of America also has
But Gordon did agree with assessments made by the MBA, CHLA and others that the Mutual Mortgage Insurance Fund is healthy and that FHA has an opportunity to help the housing market.
However, "we can't make a big difference with rates where they are, literally anything we do is just marginal," Gordon said. "But we know that we can make a difference and that is something we're working toward."
Earlier in her presentation, Gordon said the best way for FHA to
The agency is going to put out more proposed rules and requests for information.
It is concerned about how rising rates are affecting affordability for homebuyers. FHA knows that those will have an impact on volume.
"But the area where I think we are most focused is making sure that those rising rates don't leave us without the tools we need to help the borrowers who still need the help," said Gordon.