New Change.org Petition for Homeowners with FHA Private Mortgage Insurance (PMI)

Hello,

I am new to this forum but I am hoping I can have some fellow supporters on this effort as it affects many people. I started a new campaign at Change.org petitioning HUD to allow homeowners to once again cancel Private Mortgage Insurance (PMI).

If you agree, homeowner or not, please sign the petition at: https://www.change.org/p/julian-castro-secretarycastro-hud-hudgov-bring-back-ability-for-homeowners-to-cancel-fha-private-mortgage-insurance-pmi

If you are on Facebook, please be sure to like and share our page to help promote the petition: https://www.facebook.com/pages/Bring-Back-Ability-for-Homeowners-to-Cancel-FHA-Private-Mortgage-Insurance/346259442234025

I'd love to hear about thoughts on the petition, you can post them here and I will reply!

Thank You and Greatly Appreciated!

This is also against the rules of this forum...

Then refinance to a difference lender or loan program.

Also, I apologize if I broke any forum rules. I simply wanted to help anyone who may be in a similar situation.

Anthony,

As was pointed out, there does appear to be a lot of incomplete information on that petitions website. Personally, whenever a cause isn't willing to tell the whole story and only chooses bits and pieces of information that support their cause, I don't trust what they say their objective is. Instead, I believe that there is a different objective for their cause and they simply aren't willing to tell you the truth.

You provided a mortgagee letter from 2011 to support your argument. However, based on my research, per Mortgagee Letter 2013-04, the issue of mortgage insurance for the life of the loan applies to mortgages that were obtained with 10% or less down.

If the buyer puts down more than 10% to 20%, the insurance only lasts 11 years.

If the buyer puts down 20% or more, there is no mortgage insurance.

Per that letter:

For loans with FHA case numbers assigned on or after June 3, 2013, FHA
will collect the annual MIP for the maximum duration permitted under statute. See 12 U.S.C. § 1709(c)(2)(B).

For all mortgages regardless of their amortization terms, any mortgage
involving an original principal obligation (excluding financed Up-Front
MIP (UFMIP)) less than or equal to 90 percent LTV, the annual MIP will
be assessed until the end of the mortgage term or for the first 11 years of
the mortgage term, whichever occurs first.

For any mortgage involving an original principal obligation (excluding
financed UFMIP) with an LTV greater than 90 percent, FHA will assess
the annual MIP until the end of the mortgage term or for the first 30 years
of the term, whichever occurs first.

Exactly Tim... If you can't afford to put 20% down on a house, you pay the price. It's the price of buying a home. Mortgage companies/FHA have PMI because they need to cover their additional risk. It's riskier to loan money to a person who can't afford the 20% down than someone that can. Hence PMI for lack of all technical terms and analysis...

Actually, the letter you referred to was from 2000 not 2011.

The 2013 letter I provided would be a more accurate document.

The point of the FHA loan program is to allow home buyers, especially first time home buyers, who can't afford 10-20% down payment to more easily acquire a home loan at 3.5% down. Once the loan has been paid down over 20% there is no need to continue charging MIP, as there is no risk profile. This was done for 13 years from 2000 to 2013. This petition is to urge HUD to re-establish this policy, allowing homeowners the ability to cancel this costly MIP fee once they reach certain requirements.

I assume the persons saying that this is not a petition are simply trolls as the definition can easily be acquired by a simple Google search.

For example: http://dictionary.reference.com/browse/petition

"a formally drawn request, often bearing the names of a number of those making the request, that is addressed to a person or group of persons in authority or power, soliciting some favor, right, mercy, or other benefit"

This is a verifiable source. The petition is a formal request addressed to the secretary of the U.S. Department of Housing and Urban Development, a person of authority. There is no further discussion on whether this is a petition or not, case closed.

Am I the only one who doesn't get the point of this? FHA OFFERS a loan program for first time homebuyers to put down 3.5% of the home's price. You think once you pay in the other 17.5% that should eliminate the PMI? Well, you CAN do this. It's called refinancing. You have to refinance or modify any kind of loan if the terms of agreement change. If you can't afford it, then FHA isn't at fault. You honestly just can't afford a home.

That would be more correct Tim... I see this happen all the time... When someone realizes the position they put themselves in, they want/need someone to blame. It must be FHA's rules... If only they let me out of PMI, I could afford it... NO... That's not how it works or going to work.

There have already been some modifications made in the FHA program and others a few years back by the government. However, that solution is not perfect and people still stay underwater. It just allows them the option to afford their payments till they can off load the home without damaging their credit as much. The process still involves refinancing under the government terms IF you qualify.

Bad loans happen to good people. It's the industry. The bubble burst. We are all paying for it...

Actually, since you removed my posting of a comment I posted to your site, citing the appropriate Mortgagee letter showing, as I had done here, that the Insurance only lasts for 11 years if over 10% or more is put down, There is NO WAY I WOULD SIGN YOUR PETITION.

Removing of that comment because it didn't support your cause demonstrates that you aren't willing to actually discuss the issue, explore other options that may be available and purposely hide this information from those you ask to sign the petition.

To me, this makes you nothing more than a con artist.

You apparently have no real desire to assist those who are in such a situation as you describe or the situation you wished the rest of us to be in. A petition does little if any good. Media attention does some good. Gathering support by being honest about the situation, seeing the issue from all perspectives and suggest options that allow both sides to achieve their goals (or most of their goals) can create new law, turn an HOA/COA around and many other positive things.

Your lack of honesty (by failing to include all of the facts and options) demonstrates your character to me.

I do wish you luck in your endeavor.

Your endeavor will not have my support and, I suspect, will not have the support of anyone who believes in the trust but verify methodology about anything they read on the internet, hear in the broadcast media or read in the print media.

I have no idea what your talking about, your comment was deleted from where? Which site?

We may not see eye to eye on the petition but I have no ability to do that. Updates can only be posted by the petition creater and comments can only be added if you sign the campaign and I certainly have no way to delete a signature or associated comment. I don't know where you posted the update but like I said only petition creators can post updates, go to any other Change.org campaign and you'll see that. I see you can Facebook comment on the updates I post and it says there's no comments, I don't have control to delete those comments either I don't know who would. My thoughts would be either Facebook, since it's powered by them, or maybe Change.org staff. I'm sorry you think I tried to alter your opinion but I didn't delete your comment, feel free to post a comment again or even on the Facebook page I linked in my first post.