Mortgage Bankers Say FHA Premium Increases Hurt Its Finances

Premium increases intended to shore up the U.S. government’s mortgage-insurance fund have reduced its value by $4.4 billion as higher costs drove away creditworthy borrowers, the Mortgage Bankers Association said.

The Federal Housing Administration should cut its fees to stem customer losses that could threaten its finances, the Washington-based trade group wrote today in a letter to Housing and Urban Development Secretary Julian Castro.