WASHINGTON -- Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del., applauded President Obama's announcement earlier this month that the Federal Housing Administration (FHA) will reduce its annual mortgage insurance premiums:
"NAHB commends the President for taking action to reduce FHA's annual mortgage insurance premiums by 50 basis points to 0.85 percent. Lower premiums will make home loans more affordable for qualified borrowers, particularly first-time buyers, and help to alleviate tight credit conditions in the mortgage market. This prudent course reflects a recent actuarial report that FHA is back in black and strengthening its financial health. The new premium structure will allow FHA to continue building its reserves."