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President Barack Obama announced a reduction in Federal Housing Administration annual mortgage insurance premiums from 1.35 percent to 0.85 percent, which the White House said would reduce annual mortgage payments for typical first-time buyers by $900.

The president's announcement came a day after NAFCU and other organizations jointly urged the FHA to reduce the cost of single-family mortgage insurance premiums so more borrowers are able to afford mortgages.

NAFCU strongly supports this change, which is expected to help make mortgages more affordable to more consumers and further advance the housing recovery.

Obama also noted his previous call to Congress to wind down government-sponsored enterprises Fannie Mae and Freddie Mac, but did not mention a specific strategy for doing so.

NAFCU Senior Vice President and General Counsel Carrie Hunt responded in a statement: "We applaud the president's announcement of this reduction in borrower costs for FHA-insured mortgage loans. This will go a long way toward helping many Americans make the dream of homeownership a reality. As Main Street's not-for-profit, member-owned financial institutions, credit unions constantly strive to make home ownership an achievable goal for their members. We are pleased to see FHA take an action that will help make mortgages more affordable."

NAFCU supported the change in a letter sent jointly with other trades Wednesday.