The House of Representatives approved by an overwhelming margin, 406-4, the FHA Reform Act, to shore up the finances of the FHA which guarantees many mortgages.
The law gives the authority to raise the ceiling on the annual premiums charged to borrowers, raises the limits on some multifamily housing and in elevator served buildings, and authorizes increased enforcement of lenders.
The law passed today will allow the increase in annual premium to 1.55 percent of the unpaid balance of the loan. This will help increase reserves with the MIP is paid over the life of the loan.
Example: $ 150,000 Purchase Price, Current MIP $ 66.34, Under the "New" Guidelines MIP $ 190.84 !!!!
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