President Donald Trump's first executive order blocked a mortgage insurance premium cut that would have reduced the cost of mortgages for millions of middle-class home buyers.
The U.S. Department of Housing and Urban Development sent a letter Friday informing lenders, real estate brokers and closing agents the 0.25 percent premium rate cut for Federal Housing Administration-backed loans was suspended.
The order, made about an hour after Trump took office, reverses a policy change announced Jan. 9 by the Obama administration that would have saved borrowers about $500 a year.
The FHA insures about 16 percent of the homes sold in the country. The loans are popular with first-time home buyers and those without the best credit.
The rate change would have gone into effect Friday.
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