House OKs plan for higher gov't mortgage fees
June 11, 2010 The House has approved a bill giving the FHA power to hike
monthly premiums it charges to consumers. The vote was 406-4.
Officials say the agency needs to do so to stabilize its
finances, which have deteriorated because of the foreclosure
crisis.
The agency does not make loans, but offers insurance against
default. Borrowers pay extra fees because FHA-backed loans require
down payments of only 3.5 percent of the purchase price.
Under changes being considered by FHA, a borrower with a
mortgage of $170,000 would pay an extra $42 a month.
