The Federal Housing Administration (FHA) announced in January 2013 that it would raise mortgage insurance premiums by 0.1% for new loans and 0.05% for loans over $625,000, and increase the minimum down payment to 5% effective in April 2013. The FHA was created in 1934 to provide low down payment mortgages nationwide, and the premium increases are intended to boost its financial reserves which have diminished due to higher rates of delinquent mortgages and reduce its overall risk.

1. FHA RAISES PREMIUMS ON NEW
MORTGAGES IN 2013

2.  At the end of January 2013, the Federal Housing
Administration (FHA) announced that it would raise
premiums on new mortgages by 0.1 percent. It also
indicated it would raise premiums for those who
have loans of $625,000 or greater by 0.05 percent
and increase the minimum down payment 1.5
percent to 5 percent. As assistant vice president
and regional account manager for the Bellevue,
Washington, office of Fidelity National Title Group,
Carmen Arruda assists clients with many different
types of loans, including but not limited to FHA
mortgages.

3.  Created in 1934 as part of the National Housing
Act, the FHA is a government agency that issues
low-down-payment mortgages to homebuyers
across the country. The changes announced in
January 2013 went into effect in April 2013 and are
geared to increase the FHA’s financial reserves,
which have diminished in recent years due to a
higher number of delinquent mortgages, and
reduce the organization's overall risk when loaning
money.

4.  In addition to real estate transactions, Carmen
Arruda assists residential and commercial clients
with foreclosures, short sales, and leases. Prior to
her work with Fidelity, Ms. Arruda functioned as a
loan officer at California Financial Group, where
she assumed responsibilities for matters related to
titles and appraisals.