The Department of Housing and Urban Development has decided to rescind an increase in multifamily mortgage insurance premiums.
In an announcement applauding HUD, the Mortgage Bankers Associations said the housing agency rescinded a notice published in October 2007 that would have increased M.I. premiums on a number of multifamily programs.
"After the Administration proposed the fee increase in its FY 2008 budget, 117 Members of the House and 38 Senators signed letters to HUD opposing the premium increase," MBA Chairman Kieran Quinn said in the statement. "HUD listened to those concerns as well as the 229 letters submitted by the industry stating FHA is a vital financing mechanism, particularly in the current volatile credit markets."
The trade group said it provided HUD with data that indicated programs providing affordable housing were affected by the increased fee.
"The MBA survey, which looked at programs affected by the proposed MIP increase, found that 98% of the properties had average rents affordable to families earning 80% or less of area median family income," MBA stated. "We are grateful for the opportunity to work closely with Congress, HUD and the Administration on this important issue."