Yes I said comeback...I know, I know...a lot of Loan Officers are probably going to say it was never gone.
True, but you must admit that since the Monthly MIP Hike, its been harder to qualify those clients who wanted to refinance using a Streamline due to not being able to meet the 5% Net Tangible Benefit.
However, we may want to call those borrowers back, here is an interesting article on why. It only will apply to those clients who are still in loans that were originated prior to 06/01/09. Basically HARP for FHA. Lets see what happens! Complete polar opposite of my blog post a few days ago, but hey thats our business right now! lol
Later today, Obama will announce the suspected grandfathering of MIP for FHA Streamlines as well as an effective erasure of UFMIP (it's going down to 0.01%).
Concomitant with the MIP reductions, the White House reiterated their previous steps to encourage more Streamline participation by removing Streamlines from the "Compare Ratio" calculation. Excerpts from the Fact Sheet follow:
"The FHA currently charges an up-front mortgage insurance premium of 1% of the borrower’s loan balance and an additional 1.15% of the balance per year. FHA is reducing the up-front premium to .01% for streamlined refinancings of loans originated prior to June 1, 2009 and cutting the annual fee for these refinancings in half, to .55%. Together these reductions could save the typical FHA borrower about a thousand dollars a year."
Comments(1)