That was fast. Less than an hour after President Trump’s swearing in, his Department of Housing and Urban Development suspended the Obama Administration’s last-minute gift to the housing lobby to cut mortgage insurance rates.
Mr. Castro promoted the reductions as a way to lower costs for homeowners as he went out the door, but the move was a classic example of the clout of the housing lobby. Realtors, home builders and “fair-housing” advocates have been lobbying for the cut as interest rates begin to rise. They hoped the lower cost of this government subsidy would help them originate more mortgages. Mr. Castro, who has future political ambitions, also didn’t mind doing a favor for potential campaign donors.
The suspension of the premium cut is good government and good for taxpayers.
Source: Trump’s Good First Move – WSJ