MBA: Reconsider FHA MF Premium Hike

The Mortgage Bankers Association is urging the Department of Housing and Urban Development to reconsider a scheduled premium hike on Federal Housing Administration multifamily mortgages."At a time when many families are losing their homes and turning to rental housing, HUD should not impose a new tax on rental housing," MBA chairman Kieran Quinn said. "This decision will slow the development and rehabilitation of affordable rental housing across the nation." HUD has published a Federal Register notice that it is planning to increase the annual mortgage insurance premium on its most popular multifamily program from 45 basis points to 61 bps on Dec. 1. The comment period ends Nov. 19. Over 100 representatives and 38 senators have signed letters opposing an increase in the MIP. The MBA can be found online at http://www.mortgagebankers.org.