[Public Papers of the Presidents of the United States: George H. W. Bush (1992-1993, Book II)]
[September 17, 1992]
[Page 1587]
[From the U.S. Government Publishing Office www.gpo.gov]



White House Fact Sheet: Regulatory Reform to Reduce Costs of 
Homeownership
September 17, 1992

    As part of his continuing effort to reform and streamline Government 
regulations, the President today announced that the Department of 
Housing and Urban Development (HUD) will release today an important 
reform designed to reduce the cost of homeownership and thereby to spur 
residential construction.
    The President acknowledged that this reform, which does not require 
congressional action, will have a more limited impact than the $5,000 
tax credit for first-time homebuyers that he has proposed to Congress. 
But the President declared, ``I will continue to do everything I can on 
my own to get the economy moving, even if Congress sits on its hands.''
    The administrative change released today will reduce mortgage 
insurance premiums on 15-year FHA-insured mortgages. HUD estimates that 
for those who choose a 15-year mortgage, this change will reduce the up-
front FHA insurance premium by an average of $650 (based on an average 
loan of $65,000). It will also reduce the annual insurance premium by 
$165 to $325--for a total savings of approximately $2,500 to $6,000 over 
the life of the loan. This change is made possible by HUD's 
determination that 15-year mortgages pose a significantly smaller risk 
to the FHA insurance fund than longer term mortgages.