The rate hike on low- and middle-income Americans was accomplished thanks in part to the astonishing learning curve of incoming Housing and Urban Development Secretary Ben Carson, who testified that he would “really examine” the rate before making a decision and then apparently really examined it in just a few hours after Trump took office, and before Carson himself was even confirmed by the Senate.
Thanks to the administration’s swift action–which Trump modestly did not even campaign on as one of his first-day priorities–an estimated one million low- and middle-income homebuyers will now be able to contribute about $446 extra a year on their mortgage insurance to preserve the MMIF, which was facing nothing close to bankruptcy. The move to transfer an estimated $446 million from the hands of homeowners and into Washington for safe-keeping camejust hours after Trump told the nation he is transferring power from Washington and giving it back to the people.
The MMIF is mandated by law to retain at least 2% of its outstanding loan guarantees in cash on hand. It is currently well below that figure, at a mere 2.32%. Raising MMIF rates also makes private loans and loan insurance more competitive, which helps Wall Street–another top agenda item for Trump voters.
Pro-Trump supporters totally filling the National Mall on Friday.