Did you Lock in an FHA loan with lower MI?
FHA LOAN in
the hopper?
You may get STUCK
Inauguration and new Administration May Stall YOUR FHA loan
closing BEWARE! Oh no !
This could be unwound before it starts. If the President
retracts the MI reduction right after the 20th we will have stuck
borrowers.
As we know, President elect Trump
may have different ideas on how HUD should work and is creating much
uncertainty. If you locked, re-disclosure with higher numbers may be impossible. Is this a legal change of circumstance? Lender would have to pay the increase for life of
loan. The current laws, lovely Dodd Frank, require Loan Estimate to be exact and
Closing Disclosure can't go up, only down. If Trump cancels the reduction in MI,
he may hold your transaction hostage until Mnuchin figures out the granular nitty
gritty grass.
Stay tuned borrowers,
the corresponding articles now surrounding this topic. It makes having
tough conversations on the 26th easier should this occur. My advice to mortgage lenders is do not disclose the lower MI, don't write this product until we find out what the new
boss will do. |
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