FHA and housing Insurance
I have a question and hope some here can help me understand. I read today the the FHA is increasing their front end fees from 1.75 to 2.25 percent I think on new loans. My question is where did all the money that was charged along with the PMI insurance that most people pay on loans without 20% down go. Not just FHA front up insurance but all of it. My understanding is that insurace is paid through PMI to insure a lone if it goes into default. I have wondered all along where the money went that has been paid by so many for so long. Why is this not discussed?
Very Good question raised, though I am also not sure about where the money goes but for sure this money is either mishandled by some communities or being kept idle.Anyways very good initiative to raise this issue and I will wait for someone to answer this if at all aware about the facts.