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6/11/2012

FHA increases PMI Today

Hidden Falls Trabuco Canyon
I hiked there Saturday with my teenagers



FHA Mortgage Insurance Premium Changes 2012
Up Front and Annual Mortgage Insurance Premium (UFMIP and annual MIP) Increases for all FHA Loan transactions and Decreased for Certain Streamline transactions.
Up Front and Annual Mortgage Insurance Premium (UFMIP and annual MIP) Increases.
FHA increased the upfront mortgage insurance premium (UFMIP) by .75 bps for all purchase and refinance transactions with case numbers assigned on or after April 9, 2012. Increases apply regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage and will continue to calculate actual premium charges against the base loan amount before adding any financed UFMIP.
FHA increased the annual mortgage insurance premium (MIP) by .10 bps for all purchase and refinance transactions with case numbers assigned on or after April 9, 2012. If you are reading this today on June 11th, you will be paying the higher premiums.
FHA Mortgage Insurance Premium Changes 2012
Mortgage Insurance Premiums
Loans > 15 years
Case #’s prior to April 8, 2012 UFMIP=100bps
Case #’s on or after April 9, 2012 UFMIP = 175bps
Annual Premium
LTV
Case #s Through April 17, 2011
Case #s On/After
April 18, 2011 through April 8, 2012
Case #s On/After
April 9, 2012
<=95.00 percent
85 bps
110 bps
120bps
>95.00 percent
90 bps
115 bps
125bps
Loans <= 15 years and above 78%
Case #’s prior to April 1, 2012 UFMIP=100bps
Case #’s on or after April 1, 2012 UFMIP = 175bps
Annual Premium
LTV
Case #s Through April 17, 2011
Case #s On/After April 18, 2011 through
April 8, 2012
Case #s On/After
April 9, 2012
<=90.00 percent
None
25 bps
35bps
>90.00 percent
25 bps
50 bps
60bps
Note: SF forward mortgages with amortization terms of 15 years or less, and a loan-to-value (LTV) ratio of 78 percent or less, remain exempt from the Annual MIP (see Mortgagee Letter 2011-35).
Increase to Annual Mortgage Insurance Premium on Mortgages with a High Outstanding Base Loan Amount
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.
Note: Jumbo/High Balance guidelines will be updated at a later date to reflect the June changes.
Term >15 Years
Base Loan Amount
LTV
Effective
Annual MIP
< $625,500
< 95%
June 11, 2012
120bps
< $625,500
> 95%
June 11, 2012
125bps
Above $625,000
< 95%
June 11, 2012
145bps
Above $625,000
> 95%
June 11, 2012
150bps
Term <= Years with LTV above 78%
< $625,500
< 95%
June 11, 2012
35bps
< $625,500
> 95%
June 11, 2012
60bps
Above $625,000
<=90%
June 11, 2012
60bps
Above $625,000
>90%
June 11, 2012
STREAMLINE TRANSACTIONS:
Note: Streamline guidelines will be updated at a later date to reflect the June changes.
Decrease to Annual Mortgage Insurance Premium on Certain Streamline Refinance Transactions
For all SF Forward Streamline Refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the Annual MIP will be 55 bps, regardless of the base loan amount. The endorsement date is on the Case Query screen in FHA Connection. This change is effective for case numbers assigned on or after June 11, 2012.
Decrease to Up-Front Mortgage Insurance Premium on Certain Streamline Refinance Transactions
For all SF Forward Streamline Refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009, the UFMIP will decrease from 1 percent to 0.01 percent of the base loan amount. This change is effective for case numbers assigned on or after June 11, 2012. These charges are substantial increases, note the $625,500. loan fees that apply to many areas of Orange County

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