NAMB joins the Community Home Lenders of America and The Mortgage Bankers Association in this effort
WASHINGTON , Nov. 20, 2023 /PRNewswire-PRWeb/ -- The National Association of Mortgage Brokers (NAMB), the voice of the mortgage industry representing the interests of mortgage professionals and home buyers for 50-years, encourages the FHA and Biden Administration to end its Life-of-Loan Premium Policy.
Under current policy, the FHA requires borrowers to continue paying their mortgage insurance premiums for the life of their home loan, even when the loan balance reaches 80% or below of the property's value outraging mortgage leaders as private mortgage insurance on home mortgages created within the government-sponsored enterprises can be canceled after the loan-to-value ratio falls below 80%.
"Immediately ending the FHA life-of-loan premium policy is an urgent matter which elected officials in Washington D.C. should address promptly to bring relief to borrowers across the United States," said Valerie Saunders, NAMB President. "FHA policy should be aligned with similar policies adhered to by the GSEs. With homeowner equity at an all-time, it would be extremely beneficial to future homeowners who utilize FHA financing to have the ability to remove added costs on their monthly payment as their equity grows. Government leaders have the tools and information available to bring these practices to a rapid end. We are proud to join fellow industry advocates during this critical time."
NAMB joins both the Community Home Lenders of America and The Mortgage Bankers Association in this effort as recently the FHA's Mutual Mortgage Insurance Fund galvanized mortgage experts to collectively advocate the FHA to end its policy of requiring this unnecessary practice.
Scott Olson, executive director of the Community Home Lenders of America, recently commented on the initiative, "Just as relief from excessive student debt burdens has been a priority, the Biden administration should make relief from excessive homeownership mortgage cost burdens a priority by ending the FHA life-of-loan premium policy."
Mortgage Bankers Association CEO Bob Broeksmit recently provided a pointed statement concerning the Life-to-Loan Premium Policy "The fund's capital reserve ratio is far above the statutory minimum reserve ratio and is well positioned to withstand any economic slowdown. Further action on the MIP, such as eliminating the life-of-loan premium requirement, should be considered to provide payment relief to FHA borrowers."
The National Association of Mortgage Brokers has been the voice of the mortgage industry representing the interests of mortgage professionals and homebuyers since 1973. NAMB provides mortgage professionals with advocacy, education, and rigorous certification programs to recognize members with the highest levels of professional knowledge and education. NAMB's active lobbying and advocacy efforts focus on national and state issues, protecting the interests of its members and borrowers. As the leading national trade association for the mortgage industry, NAMB is affiliated with state associations throughout the country and represents the interests of more than 993,000 licensed and registered Mortgage Loan Originators and 68,000 licensed Mortgage Broker and Mortgage Lender businesses throughout the US. The Association hosts several meetings throughout the year. Engage the organization via social media: https://www.facebook.com/NAMBPros
SOURCE Steinfeld Consulting