Promised reduction in FHA mortgage insurance has been trumped.

[Chris Mason]

Linky link.

For a while there, I thought owner occupant SFR low down payment purchases with decent FICOs would be actually competitive between FHA and conventional. Right now, low down payment SFR purchases for good FICO scenarios, we usually send to Fannie/Freddie if they can swing 5% down. I was thinking that the proposed (and now redacted) policy change might be good for FHA's (& thus HUD's) budget situation to get some of that high FICO low-risk business, but now I guess those scenarios will keep going to Fannie/Freddie and not FHA.