On his first day as president, Donald Trump put the brakes on a Mortgage Insurance Premium (MIP) rate reduction for FHA mortgages. In late December 2016, HUD (Housing and Urban Development) announced premium rates for FHA loans would lower by a quarter of a percentage point beginning January 27th. This would have lowered the monthly payment for homebuyers until the MIP requirement for downpayments lower than 20% was satisfied. Ben Carson, Trump’s head of HUD advised a Senate committee that he was examining the reduction, which could be reinstated at some point in the future if the administration desires. FHA loans make up approximately 16% of mortgages nationwide and have historically been a favorite of first time homebuyers and others who do not have a downpayment of 20% or more.