The LaPeter Team

Update On Changes To FHA Mortgage Insurance

By Sue Lapeter | March 16, 2012

UPDATE ON CHANGES TO FHA MORTGAGE INSURANCE PREMIUMS FROM YOUR FRIENDS AT PRIME LENDING. Call us for more info. Uly Kim 949.533.4911 and Ana Zendejas 949.573.1561.

HUD has issued Mortgagee Letter 12-4 announcing changes to the FHA Single Family Annual Mortgage Insurance Premium (Annual MIP) and Up-front Mortgage Insurance Premium (UFMIP).  These changes apply to all FHA Single Family (SF) Forward Mortgage programs offered at PrimeLending.

Highlights include:

  • Annual MIP increasing by 10 bps

o    All loan amounts

o    Mortgages with terms ≤15 years and LTV ≤78% remain exempt from the Annual MIP (ML 11-35)

o    Effective date:  Case number assignment date April 9, 2012

  • Annual MIP increasing by an additional 25 bps – High Balance Loan Amounts

o    Loan amounts > $625,500

o    Mortgages with terms ≤15 years and LTV ≤78% remain exempt from the Annual MIP (ML 11-35)

o    Effective date:  Case number assignment date June 11, 2012

  • Annual MIP decreasing to 55 bps – Streamline Refinances

o    Streamlined Refinances endorsed on or before May 31, 2009

§  Endorsement date (Insurance Date) is on the Case Query screen in FHA Connection

o    Effective date:  Case number assignment date June 11, 2012

  • UFMIP increasing to 1.75% of base loan amount

o    Regardless of loan amount, term or LTV

o    FHA will continue to permit financing of this charge into the mortgage and will continue to calculate actual premium changes against the base loan amount before adding any financed UFMIP

o    Effective date:  Case number assignment date April 9, 2012

  • UFMIP decreasing to 0.01% –  Streamline Refinances

o    Streamlined Refinances endorsed on or before May 31, 2009

§  Endorsement date (Insurance Date) is on the Case Query screen in FHA Connection

o    Effective Date:  Case number assignment date June 11, 2012

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