Statement: HUD’s Decision to Maintain Current Pricing of FHA Mortgage Insurance Premiums

March 31, 2021

WASHINGTONLindsey Johnson, President of U.S. Mortgage Insurers (USMI), released the following statement on the announcement by U.S. Department of Housing and Urban Development (HUD) Secretary Marcia Fudge that the Federal Housing Administration (FHA) will maintain its current pricing of mortgage insurance premiums (MIP) due to the agency’s high level of serious delinquency rates, and the need to continue focusing on helping the tens of millions of families impacted by the COVID-19 pandemic:

“USMI is encouraged by HUD’s continued support of borrowers impacted by the pandemic, and its focus to ensure an equitable recovery for FHA borrowers. FHA is a critical resource for borrowers to attain homeownership through FHA-backed loans—especially for borrowers who may not have access through the conventional market. Despite unprecedented challenges derived by the COVID-19 pandemic, last year saw one of the largest mortgage origination volumes since 2006. Secretary Fudge’s decision to maintain the current pricing on FHA’s mortgage insurance premiums is prudent policy and means that borrowers will continue to have access to affordable mortgage credit during a time when mortgage rates are at historic lows. This enables the FHA to better manage the financial challenges that have arisen due to the pandemic and ensure taxpayers are safeguarded from unnecessary credit risk.

“The private MI industry has the capacity and the desire to help even more families become homeowners through the conventional market. It looks forward to working with Secretary Fudge and the HUD team, as well as other policymakers and stakeholders, in support of clear, consistent, and coordinated housing finance policies that best serve all home-ready consumers and protect taxpayers from exposure to mortgage-related losses.”

In early 2021, USMI sent a letter to then HUD Secretary-designate Hon. Fudge, outlining concerns with lowering the FHA premiums too quickly and aggressively. The letter also emphasized the importance of housing policies that promote affordable and sustainable access to mortgage finance credit.


U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to housing finance for borrowers while protecting taxpayers. Mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at