The Department of Housing and Urban Development is seeking White House approval to increase the upfront mortgage insurance premium charged by the Federal Housing Administration to borrowers.
At a press conference scheduled for Wednesday morning, HUD and FHA officials are expected to announce other changes, including tighter underwriting standards. If approved by the White House, FHA will increase the 1.75% upfront mortgage premium (paid by those who take out a common type of home loan) simply by issuing a "notice" that goes into effect within 30 to 60 days.
HUD also may ask Congress for permission to raise the annual premium that is paid monthly. This is 55 basis points paid over the course of the year for relatively low-downpayment loans.
