The Federal Housing Administration will lower mortgage premiums and assist foreclosed military members, the White House has announced - plans that are a part of President Barack Obama and his administration's efforts to help the housing market recover.
According to the White House, the FHA will slash its initial mortgage premium from 1 to 0.01 percent of a borrower's loan balance on refinanced loans. Additionally, the annual premium fee will drop to to 0.55 percent from 1.15 percent.
The president indicated these changes were implemented to continue to aid homeowners in trouble with their home loans nationwide, stating that the government needs to step in to help them as much as possible.
"This is not something the government by itself can solve," said Obama. "But I'm not one of those people who can sit around and wait for the housing market to hit bottom."
Though the changes made by the FHA will only help homeowners who secured mortgages before June 1, 2009, U.S. Department of Housing and Urban Development Secretary Shaun Donovan stated the agency's modifications should still help many homeowners.
Based on real estate data, the White House said the changes could help between 2 million and 3 million homeowners.