The Federal Housing Administration (FHA) recently and dramatically revised their mortgage insurance premium (MIP) policy in FHA Mortgagee Letter 2013-04. This new policy applies to all FHA loans assigned a case number on or after June 3rd, 2013. Consequently, such changes necessitate modifications to certain FHA or Housing and Urban Development (HUD) disclosure forms including:
1. Form HUD 92900-B (of which Cx40 is a reproduction), required by FHA Single Family Handbooks 4155.1 ch. 1.A.3 and 4155.2 ch. 3.A.2.c; and
2. The Informed Consumer Choice Disclosure Notice (of which Cx41 is a reproduction), required by 12 USCA § 1709(f) and 12 CFR § 203.10, with the form of the Notice set forth in FHA Mortgagee Letters 2000-46 and 1999-23.
Both of these forms provide a summary of FHA’s MIP policy, including when MIP will cease to be charged.
In FHA INFO #13-12, the FHA announced that they would be updating form HUD 92900-B to make it conform with their new MIP policy. However, to avoid confusion, they will not be releasing the updated version until June 3rd, 2013. They did, however, in this INFO letter release the updated language that will be replacing the current language in the form concerning MIP in order to allow lenders to prepare for the upcoming revised version. They also stated that this language can be used in preparing the Informed Consumer Choice Disclosure Notice.
We have, therefore, made changes to Cx40 and 41 so that the updated language will appear on the forms for loans assigned a FHA case number on or after June 3rd. Once the FHA releases the latest revision to HUD 92900-B, we will, if applicable, make further changes to Cx40 to make it match the official form.
The updates to Cx40 and 41 will be available on May 1, 2013 as announced previously. For more information on the FHA Annual MIP rate and duration increases and to view the specific document text edits, please see http://www.docutechcorp.com/fha-annual-mip-rate-and-duration-increases
Please note the new version of these forms and the new FHA MIP term calculations in ConformX are only triggered for loans with an FHA Case Number Assignment Date of “06/03/2013” or later. If this date is left empty or is prior to “06/03/2013” the pre-June 3rd MIP text and termination calculations will be used instead.
If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
April 30, 2013
Update: FHA posted the updated version of HUD-92900-B with a revision date of “06/2013” in the footer. There are no additional changes to the form that have not already been made to the new version of Cx40. The updated revision date will print on the new version of Cx40 effective June 6, 2013. The old revision date of “12/2004” will continue to print on the pre-June 3rd version of the document.
June 5, 2013