FHA Policy Updates

HomeBridge is reminding brokers that the additional changes HUD announced in Mortgagee Letter 2013-04 issued January 31, 2013 regarding the removal of the annual MIP exemption and the new MIP assessment periods will be effective with case numbers assigned on or after June 3, 2013.

Removal of Annual MIP Exemption

Loans with a loan term ≤ 15 years and an LTV ≤ 78% will no longer be exempt from the annual MIP as indicated below.

(see pdf for chart)

MIP Assessment Period Extended

HUD will now collect the annual MIP for the maximum duration permitted under statute 12 U.S.C. § 17099(c)(2)(B).

Current MIP Assessment Periods

(see pdf for chart)

New MIP Assessment Periods

The LTV calculation is based on the original principal balance, excluding any financed up-front mortgage insurance premium (UFMIP), and applies as follows:

  • ≤ 90% LTV annual MIP assessed for the first 11 years of the loan
  • > 90% LTV annual MIP assessed for the life of the loan

The new MIP assessment periods apply to all FHA standard and Streamline products.

The FHA standard program and the FHA Streamline matrices have been updated and posted to the HomeBridge website at www.homebridgewholesale.com.