The Federal Housing Administration (FHA) has announced that a 25 basis point increase to the Annual Mortgage Insurance Premiums for forward mortgage amortization terms is effective for all case numbers assigned on or after April 18, 2011. There are also new procedures effective April 18, 2011 for:
►Requesting case numbers, and
►Automatic case number cancellation.
Beginning April 18, FHA systems will automatically cancel any uninsured case number where there has been no activity for six months since the last action. Please see Mortgagee Letter 2011-10 for more information.
HUD’s Single Family Premium Collection System (SFPCS) will not bill for Annual MIP on a mortgage with:
►A term of 15 years or less; and
►A loan-to-value (LTV) ratio at or below 78 percent at the time of origination.
For example, if a lender closes a mortgage with a 15-year term at 78 percent LTV, SFPCS will not bill for the Annual MIP for that mortgage.
A Mortgagee Letter will be issued informing lenders that Annual MIP is not applicable for mortgages with terms of 15 years or less where the LTV at the time of origination is at or below 78 percent.