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ML 2013-04

  • Revision of Federal Housing Administration Policies Concerning Cancellation of the Annual Mortgage Insurance Premium and Increase the Annual MIP (1/31/13) (ML 2013-04)

    Link to Mortgagee Letter »


    Notable Date:

    Effective April 1, 2013 regarding the annual MIP increase

    Effective June 3, 20123 regarding revision to the period for assessing the annual MIP, removal of exemption from annual MIP for loans with terms of 15 years or less and LTVs of less than or equal to 78% at origination and increase in the annual MIP for mortgages with terms less than or equal to 15 years or LTV ratios less than or equal to 78% at origination

    Industry Participants Affected:

    All Approved Mortgagees

    Synopsis:

    FHA is revision the period for assessing the annual MIP, removing the exemption from annual MIP for loans with terms of 15 years or less and LTVs of less than or equal to 78% at origination and increasing the annual MIP on all forward mortgages except single family forward streamline refinance transactions that refinance existing FHA loans that were endorsed on or before 5/31/09.

    Revisions to the Period for Assessing Annual MIP
    All mortgages regardless of their amortization terms, an mortgage involving a principal obligation less than or equal to 90% LTV, the annual MIP will be assessed until the end of the mortgage term or for the first 11 years of the mortgage term, whichever occurs first.  For any mortgage involving an original principal obligation with a LTV greater than 90 percent, FHA will assess the annual MIP until the end of the mortgage term or for the first 30 years of the term, whichever occurs first.

    Increase to the Annual Mortgage Insurance Premium


     Term > 15 Years


    Base Loan Amount

    LTV

    New MIP

    ≤ $625,500

    ≤ 95.00%

    130 bps

    ≤ $625,500

    > 95.00%

    135 bps

    > $625,500

    ≤ 95.00%

    150 bps

    > $625,500

    > 95.00%

    155 bps


    Term ≤ 15 Years


    Base Loan Amount

    LTV

    New MIP

    ≤ $625,500

    78.01% - 90.00%

    45 bps

    ≤ $625,500

    > 90.00%

    70 bps

    > $625,500

    78.01% - 90.00%

    70 bps

    > $625,500

    > 90.00%

    95 bps

    Any Amount

    ≤ 78.00%

    45 bps

     

    The changes of the duration of the annual MIP as specified in the ML are effective for all Single Family FHA programs for which FHA charges an annual MIP except Title I and HECM.  The increases in the annual MIP specified in the ML apply to all mortgages insured under FHA’s Single Family Mortgage Insurance programs except streamline refinance transactions of existing FHA loans that were endorsed on or before 5/31/09, Title I, HECM, Section 247 and Section 248.


    Link to Mortgagee Letter »

    About this AllRegs HUD Mortgagee Letter Synopsis:

    Brought to you by AllRegs, this synopsis is intended as a “snap-shot” of the ML 2013-04, but should not be substituted for the entire contents of the actual Mortgagee Letter published by HUD.

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