This email is to let you know that HUD has issued notice that the MIP requirements will be changing. The upfront amount will increase from 1% to 1.75% and the monthly amounts will increase in two phases.
(Note: Mortgages amortized at 15 years or less and an LTV of 78% or less remain exempt from the monthly MIP per Mortgagee Letter 2011-35)
The first table is effective for all case numbers issued on or after April 9, 2012, the second table is effective for all case numbers issued on or after June 11, 2012. The mortgagee letter from HUD is attached for reference and this announcement will be posted to the bank page.
The main thing to remember in order to secure the existing MIP factors is that the case number MUST be ISSUED BEFORE April 9, 2012. This means you must initiate your case number request several days prior to April 9th in order to allow time for FHA Connection to verify the borrower’s information and issue the case number.
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Case Numbers can ONLY be requested when: • you have an active loan application for the subject borrower and property; and • certify at the time of requesting a case number that you have an active loan application for the subject borrower and property;
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New Mortgage Insurance Premium Structure
Effective with all case numbers issued on or after April 9, 2012 the mortgage insurance premiums will be as follows:
Per the Mortgagee Letter:
“On December 23, 2011, the President signed into law the Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78), which requires FHA to increase the Annual MIP it collects by 10 basis points (bps). This change is effective for case numbers assigned on or after April 9, 2012.”
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MONTHLY MORTGAGE INSURANCE PREMIUMS |
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Term > 15 Years |
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Base Loan Amount |
LTV |
MIP Factor |
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Any Amount |
< 95% |
1.20 |
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Any Amount |
> 95% |
1.25 |
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Term < 15 Years with LTV above 78% |
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Base Loan Amount |
LTV |
MIP Factor |
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Any Amount |
< 90% |
.35 |
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Any Amount |
> 90% |
.60 |
New Mortgage Insurance Premium Structure
Effective with all case numbers issued on or after June 11, 2012 the mortgage insurance premiums will be as follows:
Per the Mortgagee Letter:
“FHA is also exercising its pre-existing statutory authority to add an additional 25 bps to mortgages with base loan amounts exceeding $625,500. This change is effective for case numbers assigned on or after June 11, 2012.”
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MONTHLY MORTGAGE INSURANCE PREMIUMS |
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Term > 15 Years |
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Base Loan Amount |
LTV |
MIP Factor |
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< $625,500 |
< 95% |
1.20 |
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< $625,500 |
> 95% |
1.25 |
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Above $625,500 |
< 95% |
1.45 |
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Above $625,500 |
> 95% |
1.50 |
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Term < 15 Years with LTV above 78% |
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Base Loan Amount |
LTV |
MIP Factor |
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< $625,500 |
< 90% |
.35 |
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< $625,500 |
> 90% |
.60 |
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Above $625,500 |
< 90% |
.60 |
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Above $625,500 |
> 90% |
.85 |
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