Pressure Building on FHA to Cut Premiums Again

A financial report due out soon could reignite a battle over whether the Federal Housing Administration should again reduce its annual premium.

The FHA last cut premiums in January 2015, a move that unleashed a lot of pent-up demand for agency-insured mortgages. While many in the industry have been urging FHA to make another cut, the agency has resisted due to concerns about its reserve fund, which rebounded last year but is still being watched carefully by nervous lawmakers.

But the agency is likely to come under more intense pressure to make another cut if independent auditors give the fund a positive review in a report due out in early November.

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