Brown Introduces Legislation To Make Mortgages More Affordable For First-Time and Low Income Homebuyers
Today, Congressman Anthony Brown (MD-4) introduced H.R.1321, a bill to lower the annual mortgage premium borrowers must pay for Federal Housing Administration insurance on eligible loans. The legislation will restore a planned reduction of the mortgage insurance premium reversed by President Trump. This is the first piece of legislation authored by Congressman Brown during the 115th Congress.
“Barely a few hours after his inauguration, President Trump raised mortgage costs on working families in the Fourth District and across the country who aspire to achieve the American Dream of owning a home,” said Congressman Brown. “Today, I have introduced legislation to reverse this decision and reduce the high cost of mortgage insurance and make homeownership more accessible and affordable for many.”
This bill would cut mortgage insurance premiums and reduce costs for 750,000 to 850,000 borrowers in 2017, and make homeownership possible for an additional 30,000 to 40,000 homebuyers. The average borrower in Anne Arundel and Prince George’s Counties would save more than $500 a year with a 25 basis point reduction.
“Homeownership is the way many middle class families build wealth and achieve financial security. A fiscally-responsible reduction in premium rates will ensure the Federal Housing Administration continues to provide mortgage financing to responsible and creditworthy homebuyers,” added Congressman Brown.
The Mutual Mortgage Insurance Fund, which insures FHA-backed mortgages, has gained $44 billion in value since 2012 and its capital ratio has been above the congressionally required 2% level for two years. The last FHA premium cut was in 2015.