“FHA will begin charging “risk-based” premiums, a move that will enable the agency to help riskier borrowers since they can charge those individuals higher insurance rates. Right now, FHA premiums are a flat 1.5% of the loan, and the change would give the FHA flexibility to charge some borrowers as much as 2.2%.”
I get it, those who cannot pay the market rate 7% will be able to pay 7% with 2.2% insurance on top for a rate of 9.2%
The new quarantees will only bail out those holding the now government guaranteed delinquent mortgages.
