The Community Home Lenders Association is pointing to President Obama's recently released budget as proof that the Federal Housing Administration has leeway to lower premiums.

The budget, released Tuesday, said that due to high premiums and falling delinquency rates, the FHA would earn a 7.25% profit on each single-family loan it insures in fiscal year 2014 which ends Sept. 30, 2014. In the 2015 fiscal year, profitability is projected to hit 9% over the life of an FHA-insured loan, the Office of Management and Budget said.

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