FHA Unlikely to Follow Fannie on Refinancing Aid, Barclays Says
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The Federal Housing Administration is unlikely to change its stance of forcing homeowners with older mortgages to pay larger insurance premiums in refinancings as Fannie Mae and Freddie Mac loosen their rules to help borrowers lower their payments, according to Barclays Capital.
The FHA, which backs about a third of new U.S. mortgages, boosted its annual premiums in two steps starting in October 2010 as it seeks to avoid tapping taxpayers for support. For borrowers with as little as 3.5 percent in down payments or home equity, the cost rose to 1.15 percent from 0.55 percent.