The FHA's move to raise upfront mortgage insurance premiums takes effect next week, soon to be followed by a reduction in allowable seller concessions toward a borrower's closing costs.

Speaking to a Housing Financial Services subcommittee earlier in March, MBA President John Courson expressed concern that this could be another policy change that would have an adverse effect on the population that traditionally has sought FHA's assistance to purchase a home. He added that the cut in seller concessions would largely affect low-to-moderate, first-time, and minority home buyers.