WASHINGTON–One congressman is blasting a move by the Federal Housing Authority to lower FHA mortgage insurance premiums. The FHA said it is reducing premiums from .085% to 0.60%.
Rep. Jeb Hensarling (R-TX) called the move “cynical” and said it puts taxpayers at risk.
“It seems the Obama administration’s parting gift to hardworking taxpayers is to put them at greater risk of footing the bill for yet another bailout,” Hensarling said. “Just three years ago the taxpayers had to spend $1.7 billion to bail out the FHA. Lowering premiums to below market rates now only puts the FHA in a more precarious financial position.”