MBA's Quinn announces John Courson to be COO as of January 1st

HUD issues Mortgagee Letter on risk-based premiums for FHA mortgage insuranceMortgagePress.comHUD, Mortgagee Letter, FHA, mortgage insurance, ML 08-16 On June 11, the Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2008-16 (ML 08-16), which addresses risk-based premiums for Federal Housing Administration (FHA) mortgage insurance. On July 14, 2008, the FHA will implement risk-based premiums on one- to four-unit single family mortgages. ML 08-16 states that the premium will be based solely on the prospective borrower's credit bureau score and the loan-to-value ratio. The upfront mortgage insurance premium will range, for loan terms greater than 15 years, from 1.25 percent of the loan amount for lower-risk borrowers to 2.25 percent for riskier borrowers. ML 08-16 provides matrices that establish the mortgage insurance premiums for FHA single-family mortgages for borrowers with varying degrees of risk. For borrowers refinancing delinquent non-FHA adjustable rate mortgages, the upfront mortgage insurance premium is set at 2.25 percent of the base loan amount regardless of the loan to value ratio. For a copy of the Mortgagee Letter, click here. For more information, visit www.hud.gov.