During his first day in office, President Donald J. Trump signed a number of bills into law, including one law that will impact the real estate industry as he penned his signature on a bill that serves to reverse Obama’s mortgage fee cuts. That’s exactly what we’ll explore in today’s article from The Short Sale Gal Kristine Zelazo!
President Trump Reverses Obama’s Cut to FHA Fees
The now-former President Obama had sought to reduce the annual mortgage fees by 1/4 of 1% as part of the Federal Housing Administration’s (FHA) program, which is extremely popular amongst first-time home buyers and borrowers who fall into the low income bracket.
Obama’s FHA annual borrower fee would have resulted in a savings of approximately $500 for a home buyer who just secured a home loan for $200,000. This bill was just one that President Trump addressed, as his camp has accused the Obama Administration of passing controversial new pieces of legislation in the days leading up to the inauguration. The Obama administration also imposed an arctic drilling ban and new sanctions on Russia, amongst other changes.
It has been reported that in the second week of January, Housing and Urban Development Secretary Julian Castro of the Obama Administration had announced a cut in FHA fees. But the one-quarter of a percent reduction was never cleared with then-President Elect Trump’s camp.
This move is in line with the Republican position that cutting these fees would increase the risk of burdening taxpayers since the fee reduction would slash the amount of money available to the FHA to handle mortgage defaults.
Yesterday’s move actually resulted in activity on Wall Street that resulted in a slight benefit to some members of the real estate and lending industry. That’s because there are a number of private insurers that stand behind the loans issues by Freddie Mac, Fannie Mae and other FHA competitors. So by eliminating this fee reduction, it eliminates a potential competitive advantage for the FHA.
Friday’s move by the newly-inaugurated President Trump was the subject of public criticism.
“It took only an hour after his positive words on the inaugural platform for his actions to ring hollow,” said New York Senator and Senate Democratic leader Chuck Schumer as he denounced the move. He added, “One hour after talking about helping working people and ending the cabal in Washington that hurts people, he signs a regulation that makes it more expensive for new homeowners to buy mortgages.”
Ready to Get Started in Real Estate Investing?
If you’re getting started in real estate, consider working with a real estate investing mentor like The Short Sale Gal, Kristine Zelazo. Getting started in real estate investing can be somewhat challenging, but when done right, you can stand to make significant profits. You’ll have lots of advantages in this regard when you work with a real estate investing and short sale expert like Kristine Zelazo, better known as The Short Sale Gal.
Kristine has even launched a new program, called The Bird Dog Program, which is designed to help individuals get involved making money on real estate deals and short sales.
Based in Florida, Kristine works with both buyers and sellers and she is an experienced negotiator. So if you’re an investor seeking to get started in buying short sales and need a great mentor or wish to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
To get started with selling your home, simply complete the home pre-sale form to provide Kristine with additional information on the property in question. Then, call 800.664.0616.