WASHINGTON, DC (January 8, 2015) – Today, President Obama announced that the Federal Housing Administration (FHA) will reduce annual mortgage insurance premiums and expand responsible lending to creditworthy borrowers. Reducing premiums by 0.5 percentage point from 1.35 percent to 0.85 percent will help the typical first-time homebuyer save $900 in their annual mortgage payment. Following this announcement, Credit Union National Association (CUNA) President and CEO Jim Nussle released the following statement:
“I’m pleased President Obama has made this move to make it easier for first-time home buyers to obtain a mortgage. CUNA has always taken seriously our responsibility to ensure that consumers are protected and their financial security remains as high has possible. Bob Ramirez, President and CEO of Vantage West Credit Union in Tucson, Ariz., is serving at CUNA’s representative at the event today and was invited by President Obama to attend.
“The financial crisis caused by the nation’s biggest banks destroyed the finances of many hard-working families, but credit unions stood by their members and helped assist them with their mortgages to every extent possible. In fact, in 2009, credit unions saw their delinquency for mortgage loans peak at 1.61 percent compared to 8.86 percent at the banks – many who lured consumers into debt they could not afford. CUNA sent a letter Tuesday, along with a number of other housing and financial trade organizations, requesting lower premiums because credit unions have long advocated prudent moves by government agencies involved in home finance to reduce the regulatory burdens that make home ownership more expensive.
“While today’s announcement is a step in the right direction, there are additional steps that need to be taken to help credit unions and their members even further. We look forward to working with Congress and the administration to closely examine the regulatory burden facing lenders and to remove barriers to mortgage lending that keep qualified borrowers from achieving the dream of homeownership.”