The rising tide of FHA loans comes as distressed sales, cash sales and institutional investor sales in June were all down from a year ago to multi-year lows.
Justice contends the Quicken encouraged its employees to disregard FHA rules and say that mortgages met the guidelines when they actually did not.
In 2014, 25 percent of buyers using conventional or FHA loans put less than 3 percent down when purchasing a home, down from 27 percent in 2013.
FHA refinance applications increased 76.5 percent in response to a reduction in annual mortgage insurance premiums which took effect January 26.
Mortgage rates have reached their lowest level since May of 2013, falling under 4 percent and causing refinance application volume to soar.
Now President Obama is set to announce a cut in Federal Housing Administration mortgage-insurance premiums as the agency’s insurance fund has reached a positive level for the first time in three years
The lawmakers called on Department of Housing and Urban Development Secretary Julián Castro to lower FHA mortgage costs, typically charged to borrowers who bought homes with low down payments.
Many consumers with down payments below 20 percent can save $2,251 to $12,026 in just five years by choosing private mortgage insurance, the WalletHub report finds.
On Jan. 1, the limits for FHA-insured loans in the nation’s most expensive areas will be $625,500 for a single-unit home, down from $729,500. The current standard loan limit for areas where housing costs are relatively low will remain unchanged at $271,050.
There is little doubt that the shutdown has had an affect on the mortgage industry as purchase applications for government-sponsored programs dropped by more than 7 percent last week to their lowest level since December 2007, according to the Mortgage Bankers Association.