Department of Housing and Urban Development (HUD) Secretary Scott Turner announced the Federal Housing Administration (FHA) will propose an across-the-board leveling of its Upfront Capitalized and Annual Mortgage Insurance Premiums (MIPs) to 25 basis points for all multifamily program categories.
This action will involve the termination of the Multifamily Green and Energy Efficient Mortgage (Green MIP) category, which the department defined as “burdensome and costly for lenders and developers and has proven to be ineffective in furthering wide-spread affordable housing development.” HUD will solicit public comment over the next 30 days to determine support of this proposal.
“At HUD, we’re mission-minded and focused on helping to put affordable housing within reach for hardworking Americans,” said Turner. “By leveling MIPs and cutting cost-inflating regulations, we’re unlocking competitive financing and driving down costs across the board to spur development. For too long, access to housing has been tied to obsolete, ideological mandates. Under President Trump’s leadership, Americans are no longer forced to subsidize misguided and inefficient green energy crusades at the expense of real housing solutions.”
Mortgage Bankers Association President and CEO Bob Broeksmit welcomed the announcement, declaring in a statement, “MBA has long advocated for sensible changes that can make HUD’s multifamily lending programs more competitive, with a goal of lowering rental housing costs by boosting supply. We commend HUD Secretary Scott Turner and his team for being responsive to our recommendations on this issue. Leveling upfront and annual mortgage insurance premiums will help increase rental housing production and improve affordability for renters across the country.”
