Search
 

NAHB Scores on Multifamily Mortgage Insurance Premiums

WASHINGTON, DC-The National Association of Homebuilders is celebrating a win with the Housing and Urban Affairs Department's decision to reduce mortgage insurance premiums on new apartments from 80 basis points to 57.

By Barbra Murray | Updated on February 07, 2002

WASHINGTON, DC-The National Association of Homebuilders (NAHB) is celebrating the Department of Housing and Urban Development’s decision to scale back mortgage insurance premiums for new apartment buildings from 80 basis points to 57 basis points. The change is part of the Bush administration’s FY2003 budget, and comes after HUD raised the premium for FHA multifamily mortgage insurance programs by 30 basis points last year.

For NAHB members, news of the change is cause for special celebration, as the association campaigned vigorously for months to get the number lowered. In November, NAHB’s Dave Curtis offered testimony on the matter before the Senate Banking, Housing and Urban Affairs Committee. “NAHB has repeatedly expressed concern about HUD’s decision to raise the mortgage insurance premiums on these [multi-family housing] programs from 50 to 80 basis points for the simple reason that those increases translate into increased rents and decreased affordability,” Curtis said. “We believe that the model utilized by HUD and [the Office of Management and Budget] is outdated and unnecessarily pessimistic.” NAHB followed up its congressional testimony with written suggestions for improving the model assumptions. The new terms go into effect on October 1 of this year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.