A bill has been introduced in Congress which proposes that borrowers with Federal Housing Administration (FHA) loans will no longer have to pay mortgage insurance premiums for the life of the loan.
The “Making FHA More Affordable Act,” proposed by Rep. Maxine Waters (D-Calif.), would reinstate the FHA’s previous policy of only requiring premiums until the outstanding principal balance reaches 78% of the original home value, similar to the policy for private mortgage insurers under current law.