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Mortgage Insurance Premiums

NHC has strongly advocated for a MIP reduction to address America’s growing affordability housing crisis. The Black Homeownership Collaborative signed a joint letter in October 2022 urging HUD to meaningfully reduce the MIP and suspend the life of loan requirement to assist borrowers with FHA-insured loans, who are disproportionately people of color. In February 2023, HUD announced the reduction of the annual mortgage insurance premiums by 30 basis points. We recognize the reduction of the MIP as an important step forward and will continue to work with the administration to eliminate the “life of loan requirement” on FHA mortgages to help first-time homebuyers build wealth faster, as is the case with conventional conforming mortgages.

Housing Supply

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In the Fall of 2022, a diverse group of affordable housing leaders, including the National Housing Conference, met with senior White House officials, including principals of the National Economic Council, Department of Housing and Urban Development, and the Federal Housing Finance Agency to address housing supply and affordability challenges across the country. One of NHC’s top policy priorities continues to be the passage of the Neighborhood Homes Investment Act. Neighborhood Homes is the only legislation unanimously endorsed by the Collaborative. We believe this legislation is a critical tool in our effort to close the racial homeownership gap.

Loan Level Price Adjustments

NHC continues to strongly advocate for the removal of Loan Level Price Adjustments (LLPAs) on Purchase Money Mortgages (PMMs). Some progress was made by the recent pricing grid update from the Federal Housing Finance Agency that reduced LLPAs for many borrowers limited by wealth or income. NHC has argued that LLPAs have long outlived their usefulness and GSE guarantee fees are the appropriate way to pay credit risk guarantees.

EMPLOYER-ASSISTED HOUSING TOOLKIT

NHC launched a new Employer-Assisted Housing (EAH) Toolkit providing a step-bystep process that serves to empower organizations and policymakers to explore solutions to housing, transportation, and employment. EAH programs provide homebuyers with down payment and closing cost assistance in the form of a loan, which is forgiven over a period as long as the employee remains with the organization. EAH programs create homeownership opportunities for individuals who may not otherwise be able to finance the purchase of a home.

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