New FHA Annual MIP Rates

HUD Mortgagee Letter 2015-01, issued January 9, 2015, announced the annual mortgage insurance premiums (MIP) for loans with a loan term greater than 15 years are being reduced by 50 basis points from the current premiums effective with FHA case numbers assigned on or after January 26, 2015.

The new MIP rates do not apply to Streamline refinance transactions that are refinancing an existing FHA loan endorsed prior to May 31, 2009 (MIP for these loans is 0.55%).

The new annual MIP rates for loans with a term > 15 years are as follows:

There is no change to the premiums on loan terms ≤ 15 years.

FHA will temporarily approve case number cancellation requests in order for borrowers to take advantage of the new reduced premiums beginning January 15, 2015 through February 26, 2015.

Brokers should coordinate case number cancellation requests through their Account Manager.

HomeBridge will require borrowers to sign the Supplemental Disclosure to Informed Consumer Choice Disclosure Notice (attached) acknowledging they are aware that the MIP rates have been reduced effective January 26, 2015 and that they have either chosen to proceed with their scheduled closing or to delay their closing to take advantage of the new lower annual MIP. HomeBridge will require the Disclosure on FHA loans until further notice.

If you have any questions, please contact your Account Executive.