Trump’s mortgage increase could be a way to avoid potential bailouts.

Recently President Trump signed a bill that raised mortgage bills to non-wealthy first time home buyers in order to contribute to the Federal Housing Authority’s insurance program.

The FHA’s program is in the event of mortgage defaults by high risk borrowers. Many including new HUD Secretary Bill Carson feared that former President Obama’s rate reduction for first time buyers might leave The FHA without sufficient funds to handle another bailout of the banks like the one that crippled the economy about 9 years ago. The FHA required a bailout itself in the tune of over 1.7 billion dollars (Fortune). 

For more on how much of a percentage increase and more on this story, click on the source: Fortune

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