According to the Los Angeles Times, on Wednesday January 7, 2015, President Obama said that the Federal Housing Administration will lower its high fees for mortgage insurance, a bid to encourage more purchases by first-time and middle-income home buyers. There has been an increase in FHA premiums since 2011. The increase has been in place to offset losses caused by defaults on mortgages it backed.

President Obama said Wednesday January 7, 2014 that the FHA will lower its fees from 1.35% to 0.85% of the total loan amount to encourage more purchases by first-time and middle-income home buyers.

According to CNN, the typical first-time homebuyer will save $900 a year on their mortgage payments. Existing homeowners who refinance into an FHA loan will see similar savings. They also stated that home values are on the rise, the job picture is improving and foreclosures have fallen to their lowest level since 2006.

FHA loans require tiny down payments compared to other loans, and the credit requirements are night as tight. More details on this can be found here on the Making Homeownership More Accessible and Sustainable Fact Sheet.

With all of this said, now is the time to start back your FHA direct mail campaigns. What a way to start 2015 right? FHA has been a tougher mortgage product to offer with its hefty insurance premiums. As of right now the upfront premium is not changing. With the annual premium changing, now is the time to start back mailing these FHA mortgage holders and allow them to start saving.  Keep in mind, rates are still at historical lows and that will eventually change.