The Federal Housing Administration's life-of-loan premium discourages borrowers from refinancing into another FHA mortgage, damaging the stability of the insurance fund.
Homeowners are still paying very high insurance premiums for the life of their Federal Housing Administration loans to subsidize the operations of the HECM program.
Borrowers of "forward" Federal Housing Administration mortgages are unfairly being expected to backstop the disparate mission and risks of the Home Equity Conversion Mortgage program.
Contrary to the arguments of its critics, the mortgage insurance premium reduction issued in January has helped spur positive capital growth for the Federal Housing Administration.