Builders Urged to Oppose FHA Insurance Premium Hikes
NAHB is urging its members to contact HUD immediately to voice their opposition to the agency’s proposal to significantly increase the mortgage insurance premiums (MIP) that multifamily developers would be required to pay for several key FHA programs, including the Section 221(d)(4) program, which would jump from 45 basis points to 77 basis points.
HUD plans to implement these increases on Oct. 1. A comment letter from NAHB expresses strong opposition to the proposed increases. Before the 30-day comment period ends on July 26, it is also important for HUD to receive letters from individual developers and lenders who oppose the proposed increases.
In their comment letters, NAHB members should state their opposition to the increases and explain how the higher premiums will adversely affect their business and housing affordability for renters.
NAHB members can access a sample comment letter that can be personalized.
Non-members also are encouraged to comment, and click here to view the Federal Register Notice announcing the increases.
All comment letters should reference Docket No. FR-4679-N-11, Changes in Certain Multifamily Mortgage Insurance Programs Notice, and be sent to:
Office of General Counsel
Department of Housing and Urban Development
451 Seventh Street, SW
Washington, D.C. 20410-0500
Comments also can be submitted electronically to www.regulations.gov.
A similar increase in MIP is included in the Bush Administration’s proposed budget for 2007, and NAHB is opposing that proposal as well.
For additional information or more details, e-mail Claudia Kedda at NAHB, or call her at 800-368-5242 x8352.