Friday, January 20, 2017
Why did Trump reverse Obama's last minute HUD mortgage insurance rate cut? To avoid another subprime disaster
Trump indefinitely suspended a pending rate cut for mortgage insurance required for FHA-backed mortgages that was a last minute obama executive order. The rate cut could cost taxpayers if the loans started to go sour and the Federal Housing Administration was unable to cover the losses. The agency needed a $1.7-billion bailout from the U.S. Treasury in 2013 after it expanded its role last decade following the collapse of the subprime mortgage market. .