Freedom Mortgage Corp., a privately held, full-service mortgage lender licensed in 50 states, is hiring as many as 500 new employees to accommodate anticipated volume growth following President Barack Obama’s plan to reduce Federal Housing Agency’s (FHA) mortgage insurance premiums.
FHA makes homeownership more affordable
Obama’s announcement of a .50 percent reduction in the FHA annual mortgage insurance premium (MIP) means that borrowers will now pay .85 percent rather than 1.35 percent of the loan amount to insure lenders against loss when making FHA loans. Many more borrowers will now qualify for FHA loans and others are expected to be motivated to refinance existing loans in order to obtain lower mortgage payments. With declining interest rates as well as the lower MIP on FHA loans, some estimate as many as 3 million current FHA borrowers will be moved to refinance following the president’s actions.
“This reduction in MIP rate is a very significant development for housing and the economy,” Freedom Mortgage President and CEO Stanley Middleman said. “New homebuyers inject life into the economy and create jobs, and lower monthly payments from refinancing result in greater spendable income in every sector. As we expect many Americans to take advantage of the MIP rate reduction, we intend to be ready for a surge in volume. We may end up hiring more than 500 new people to accommodate our growth nationwide.”
The company is hosting job fairs for licensed loan officers, loan processors and support personnel.