Doesn’t Money Have to Come from Somewhere?

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A nagging question is never addressed in this Christine Dunn’s Providence Journal¬†article:

One of the Trump administration’s first actions last Friday was the suspension of a previously announced 0.25 percentage point rate cut in the Federal Housing Administration’s annual mortgage insurance premium. The planned cut, scheduled to become effective Jan. 27, had been projected to save new FHA-insured homeowners an average of $500 this year….

The FHA is a part of the U.S. Department of Housing and Urban Development, and it offers mortgage insurance, most often to first-time buyers and low-income individuals. An estimated 16 percent of mortgages in the U.S. are FHA-insured. The mortgage insurance is designed to protect lenders against defaults.

Was there no information about why the Trump administration took this action or where the money comes from?  Maybe this move benefits corporate interests, or maybe it benefits taxpayers; it would seem incumbent upon journalists reporting the benefits of a government program for the recipients to also give some sense of whom it affects adversely.

Inadvertently or deliberately, this omission perpetuates an imbalanced understanding in the public, disallowing us from weighing costs when assessing how well government is making decisions.



  • Mario

    The cost was basically an increase in risk that the agency would need a bailout if insurance premiums were too low to cover payouts. It’s a program that’s designed to run without appropriation, so it needs to cover costs, including risk. This was simply a late term move by Obama to force Trump into making one of his first moves look bad. Little did he know he wouldn’t need the help.

    • Mike678

      Agreed–Obama made many decisions based on political expediency instead of what was best for the American people. What has President Trump done that has harmed you?

  • GaryM

    RI Housing, Housing Works, Smart Growth, et al. are all in panic mode these days since their main funding source, HUD, is now in the hands of people with some common sense.

    These “paid for” Projo stories have always had one purpose, to try and convince taxpayers that there is a housing shortage in RI when there really isn’t one.

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