(RECAP: A nonbank mortgage trade association renewed calls this week for the government to cut insurance premiums on FHA loans, but the president of the nation’s largest trade group, the Mortgage Bankers Association, says that would be a terrible thought. MBA President David Stevens said FHA’s insurance fund still has not achieved a level of stability to warrant another reduction at this time. He’s also against removing a post-recession rule that requires borrowers to hold insurance for the life of the loan. Earlier this week, the Community Home Lenders Association (CHLA) sent FHA a letter, urging the agency to cut the annual insurance premiums to 55 basis points, the level it was before the agency increased premiums after the financial crisis. CHLA also wants the agency to rescind the requirement on borrowers to hold insurance until the loan is fully amortized.)

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