|HUD No. 23-043
HUD Public Affairs
February 24, 2023
In Case You Missed It: Biden-Harris Administration to Save Some New Homebuyers $800 Each Year on Average on Mortgage Payments
WASHINGTON - On Wednesday, February 22, 2023, Marcia Fudge, the 18th Secretary of the U.S. Department of Housing and Urban Development (HUD), and Kamala D. Harris, the Vice President of the United States, announced that HUD reduced the annual mortgage insurance premiums (annual MIP) for people with new FHA mortgages. The action is expected to benefit an estimated 850,000 borrowers over the coming year and will save these families an average of $800 annually.
See below for highlights from news clips, coverage of the event yesterday at Bowie State University, and the response from national leaders and local stakeholders alike:
Secretary of Housing and Urban Development, Marcia Fudge, joins Morning Joe to
discuss a new Biden-Harris plan to save eligible homeowners and home buyers money.
The Wall Street Journal: Biden Administration to Cut Mortgage Insurance Costs for Lower-Income Buyers
WASHINGTON—The Biden administration will trim costs under a mortgage program for first-time and lower-income buyers, a bid to boost affordability while median home prices remain near record highs, the White House said Wednesday.
People buying their first home can be eligible to receive some relief from mortgage insurance costs under a program that the Biden administration will unveil on Wednesday.
Borrowers with mortgages insured by the Federal Housing Administration will see their fees cut by about $800 a year, or a 0.3 percentage point, according to a White House fact sheet.
The Biden administration on Wednesday moved to cut the cost of mortgages for low-income and minority borrowers, in a victory for lenders and housing advocates at a time of instability in the market.
The Federal Housing Administration will slash 30 basis points off its annual mortgage insurance premium, reducing the fee it charges homebuyers from 0.85 percent to 0.55 percent for most new borrowers. The reduction will save the average homebuyer with an FHA-insured loan about $800 a year, according to the White House.
On behalf of HUD Secretary Marcia Fudge, Harris delivered remarks at Bowie State University in Maryland highlighting the new action that the agency says will save an average of $800 in 2023 alone for an estimated 850,000 homebuyers and homeowners.
The announcement was also featured in a variety of digital, print, and broadcast publications:
- Forbes Advisor
- The Hill
- Housing Wire
- Capital Gazette
- National Mortgage News
- National Mortgage Professional
- Spectrum News
- Mortgage News Daily
- ABC7 Washington
- Fox 32 Chicago
- ABC 9 Kansas City
Outside of news outlets, a variety of national leaders, organizations, and stakeholders praised, welcomed, and amplified this announcement:
- The White House
- Vice President Kamala D. Harris
- Gov. Wes Moore (D-MD)
- Sen. Jeanne Shaheen (D-NH)
- Rep. Emanuel Cleaver (D-MO)
- Susan Rice, White House Domestic Policy Advisor
- Federal Housing Administration
- Adrianne Todman, HUD Deputy Secretary
- Center for American Progress Action Fund
- National Fair Housing Alliance
- National Association of Home Builders
- Bowie State University
- Brian Deese, Former Director of the National Economic Council
- Jake Day, Acting Secretary of the Maryland Department of Housing & Community Development
- Herbie Ziskend, Deputy Communications Director at the White House
- Rachel Thomas, Senior Communications Advisor for Policy at the White House
- Rachel Palermo, Deputy Communications Director for Vice President Harris
- NextGen America
- Prosperity Now
- Ben Crump, Civil Rights Attorney