In line with President Donald Trump’s promise to eliminate Biden-era “green energy” programs across the federal government, Housing and Urban Development (HUD) Secretary Scott Turner on June 24 announced that his department will overhaul Biden-era mortgage programs that it considers “misguided and inefficient.”
According to Turner, the Federal Housing Administration (FHA) will propose a uniform reduction of its upfront capitalized and annual mortgage insurance premiums (MIPs) to 25 basis points across all HUD multifamily program categories. The upfront MIP, a critical requirement for FHA loans, is 1.75 percent of the loan amount and can be paid in cash at closing or rolled into the loan. The annual MIP ranges from 0.15 percent to 0.75 percent of the loan and is collected in monthly installments.
