This morning, HUD released mortgagee letter 12-04, formally announcing the MIP changes discussed in our last blog post. There is one addition that I need to tell you about, and it only deals with FHA STREAMLINE REFINANCES.
EFFECTIVE WITH FHA CASE NUMBERS ASSIGNED ON OR AFTER JUNE 11, 2012:
If you are originating a streamline refinance and paying off an existing FHA loan that was endorsed for insurance on or prior to May 31, 2009, the UFMIP on the new loan will decrease to 0.01% of the new base loan amount, and the annual MIP (paid monthly) will decrease to 0.55%. Some industry groups have already lodged an inquiry with HUD as to why the May 31, 2009, date was chosen. If we get an answer to that question, I’ll be sure to let you know.
Additionally, the effective date for the increases to the up-front and annual MIP that was discussed in our last blog post has been changed. The first increase for all loans will now be effective with case numbers assigned on or after APRIL 9, 2012, and the additional increase for high-balance FHA loans will now be effective with case numbers assigned on or after JUNE 11, 2012.
Let’s get the word out! Pick up the phones, close some loans, and (as always) happy originating!