Comments on: Will HUD Drop Its New Premium Plan? http://www.fhaloanpros.com/2008/07/will-hud-drop-its-new-premium-plan/ The Unofficial Guide to FHA Loans & Mortgages Sat, 21 Nov 2009 04:54:19 +0000 http://wordpress.org/?v=2.6 By: Walt Foster http://www.fhaloanpros.com/2008/07/will-hud-drop-its-new-premium-plan/#comment-21205 Walt Foster Sun, 27 Jul 2008 09:03:02 +0000 http://www.fhaloanpros.com/2008/07/will-hud-drop-its-new-premium-plan/#comment-21205 Not a word about veterans home loans and insurance. 5 years ago I moved into my VA loan home. August of 2008 will increase my expense by 50%. My fixed income is direct into my bank and my payments are arranged the same way to Wells Fargo. I have not missed a payment nor have I been late. IThe same is true of my insurance. Are their no exceptions for veterans like me for this abuse. Not a word about veterans home loans and insurance. 5 years ago I moved into my VA loan home. August of 2008 will increase my expense by 50%.

My fixed income is direct into my bank and my payments are arranged the same way to Wells Fargo.

I have not missed a payment nor have I been late. IThe same is true of my insurance.

Are their no exceptions for veterans like me for this abuse.

]]> By: Prof. Samuel D. Bornstein http://www.fhaloanpros.com/2008/07/will-hud-drop-its-new-premium-plan/#comment-21078 Prof. Samuel D. Bornstein Fri, 25 Jul 2008 13:50:39 +0000 http://www.fhaloanpros.com/2008/07/will-hud-drop-its-new-premium-plan/#comment-21078 Risk-based premiums are based upon risk of default. The higher the risk, the higher the premium. If the risk of default can be lowered, this will be reflected in lower premiums. The question then is...how can we lower the risk? The answer is financial education. The borrower should be given an option to agree to taking a course in specific financial literacy that will provide guidance for better financial judgement. If this can be accomplished, we will have a win-win situation. Premiums will be lower and borrowers will benefit by the potential of improving their credit scores. Risk-based premiums are based upon risk of default. The higher the risk, the higher the premium. If the risk of default can be lowered, this will be reflected in lower premiums. The question then is…how can we lower the risk? The answer is financial education. The borrower should be given an option to agree to taking a course in specific financial literacy that will provide guidance for better financial judgement. If this can be accomplished, we will have a win-win situation. Premiums will be lower and borrowers will benefit by the potential of improving their credit scores.

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