Certainly heard it right! It was only July 14 when the new Risk-Based Premiums for mortgage insurance went into effect. I had just gotten used to referencing it with my prospective buyers and referall partners...and now a new annoucement from HUD. Just as I thought I got a hang of something, I have to go back to square one. Oh my :) Are you keeping up? If not then it becomes even more important that you work with those professionals that keep up with the constant changes.
Effective October 1, 2008 through September 30, 2009 there will be a moratorium on the risk based structure.
Just think that in the last weeks, 2 of my First Time Home Buyers were pre-approved using the July 14 structure and so I hope that they find a home before Oct 1 because the premium based structure save them money either in upfront mortgage insurance fee or monthly mortgage insurance premium.