Two updates issued by the U.S. Department of Housing and Urban Development bring bad news to homeowners. Denied Mortgage Insurance Rate Cut Costs Homeowners $500/year The new administration indefinitely suspended a proposed rate cut for FHA-backed mortgage insurance. Instead of dropping rates to .60 percent, they will remain at .85 percent. The decision—made within the hour that the new administration assumed office– will cost homeowners a savings averaging $500 a year. Savings would vary by state. In California, the savings would have averaged $860 per year. LA Times reports that the administration denied the proposed cut, citing risk prevention as the cause. Borrowers can have down payments of as little as 3.5 percent and credit scores as low as 580. The average credit score for borrowers, however, was a fair 679 in late 2016. Non-bank lenders often manage higher risk FHA-backed loans. These lenders may not have the same reserve requirements as banks. The California Association of Realtors president Geoff McIntosh issued the following statement on the decision: “FHA’s single-family home portfolio is financially sound as it has ever been, and we hope that once the new administration has thoroughly reviewed the merits of the premium reduction the suspension will immediately be lifted.” Secretary of Housing and Urban Development  Ben Carson says he intends to reexamine the decision. He plans to collaborate with FHA administrator and other financial experts to “really examine that policy.” American Indian Households Face Increasing Challenges Affordable Housing Finance shared the latest developments in an independent American Indian Housing Report initiated by HUD.  While tribes have responsibly used existing resources for improvements, dire housing conditions and a lack of resources continue to hinder progress. Researchers with the Urban Institute in Washington, D.C. examined the housing needs of American Indians, Alaska...