Do you recall on Inauguration Day when President Trump went to the White House (after Inauguration but before attending the parties that night) to sign the executive order to roll back the ACA/healthcare? He also at the same time suspended the FHA's recent reduction in Insurance Premiums. Buyers who take out FHA loans historically pay insurance premiums when they take out the loan. A few months ago the FHA rolled the premiums back, indicating that the high premiums were excessive.

On November 20th, 2016, in this blog spot, I listed some of what I thought might be the effect on real estate of the Trump Presidency. And on December 9, 2016 I indicated what might be the effect of Ben Carson taking over the Housing Department.

While I was right on the money regarding Dr. Carson, I'm flabbergasted that President Trump increased the mortgage insurance premiums as his first or maybe second act. I'm not aware of any statement made by President Trump justifying the increase.

The California Association of Realtors has since written to President Trump stating that the FHA portfolio of single family homes is financially sound and that the increase will negatively affect California greater than any other state. The move will increase mortgage costs by about $900/year to around 800,00 home buyers. It will shut out about another 35,000 home buyers. President Trump has indicated the prior decrease in fees will be "suspended indefinitely."

For the most part the change will affect Hollywood Hills home purchasers in the lower home price points.