A group of 18 senators urged Housing and Urban Development Secretary Julian Castro to lower the fees on Federal Housing Administration (FHA) loans.
“As any business knows, just as a price that is set too high will lead to less profit, not more, lowering the premium on qualified borrowers may actually produce greater revenue and fully restore the capital ratio more quickly,” the senators wrote.
{mosads}The senators said lowering the fees could provide a boost to the housing market and help the economy overall.
Their suggestions came as the FHA released a report showing it has nearly fully recovered from losses incurred during the 2008 housing crisis.
“We congratulate you on the vast improvement in the FHA’s financial position and urge you to use this opportunity to ensure that premiums are set at a level that balances both sustainability and affordability,” the senators wrote.
Sens. Barbara Boxer (D-Calif.), Robert Menendez (D-N.J.), Charles Schumer (D-N.Y.), Jeff Merkley (D-Ore.), Elizabeth Warren (D-Mass), Barbara Mikulski (D-Md.), Dianne Feinstein (D-Calif.), Patty Murray (D-Wash.), Dick Durbin (D-Ill.), Ben Cardin (D-Md.), Bernie Sanders (I-Vt.), Jeanne Shaheen (D-N.H.), Kirsten Gillibrand (D-N.Y.), Richard Blumenthal (D-Conn.), Chris Murphy (D-Conn.), Mazie Hirono (D-Hawaii), Ed Markey (D-Mass.) and Cory Booker (D-N.J.) signed the letter, which was sent Thursday.