HomeBridge is reminding brokers that the Department of Housing and Urban Development (HUD) will be increasing the annual mortgage insurance premium (MIP) on FHA loans effective with case numbers assigned on or after April 1, 2013. There are no increases to the up-front mortgage insurance premium (UFMIP).
NOTE: These increases do not apply to Streamline refinance transactions that are refinancing an existing FHA loan that was endorsed on or before May 31, 2009.
New Annual MIP – Case Numbers Assigned on or after April 1, 2013
(view pdf for chart)
FHA has advised that case numbers cannot be transferred from one borrower to another. If a case number is pulled for a borrower prior to April 1, 2013 and the transaction is not completed a new case number is required and the new borrower is subject to the increased annual premiums.
HomeBridge would like to remind brokers that, in order to request a case number, FHA requires there be an actual borrower with an active loan application for the subject property.
HUD has announced additional changes that will be effective with case numbers issued on or after June 3, 2013. FHA will collect the annual MIP for the maximum duration permitted and an annual MIP will be required on loans with an LTV ≤ 78% with a loan term ≤ 15 years (currently no MIP is required on these loans).
HomeBridge will issue further guidance on the additional changes in the near future.
HomeBridge will update the FHA Program matrix with the new MIPs on April 1, 2013 and post the matrix on the HomeBridge website at www.homebridgewholesale.com.
If you have any questions, please contact your Account Executive.