Mortgagee Letter 2015-01 announced that the FHA Single Family Annual Mortgage Insurance Premium (annual MIP) for all Title II forward mortgages with terms greater than 15 years will decrease by 0.50 percent effective for case numbers assigned on or after January 26, 2015, except:
- single family forward streamline refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009 (which will continue to have an annual MIP of 0.55 percent and an UFMIP of 0.01 percent); and
- Section 247 mortgages (Hawaiian Homelands)
To allow mortgagees to obtain the reduced annual MIP rate for loans in process with active FHA case numbers, FHA will temporarily approve cancellation requests for active case numbers within 30 days of the effective date of January 26, 2015. FHA loans will continue to have an upfront MIP (UFMIP) of 1.75 percent. The new annual MIP rates effective for case numbers assigned on or after January 26, 2015 are as follows:
|
Term > 15 Years |
|
Base Loan Amount |
LTV |
Annual MIP |
|
≤ $625,500 |
≤ 95.00% |
80 bps |
|
≤ $625,500 |
> 95.00% |
85 bps |
|
> $625,500 |
≤ 95.00% |
100 bps |
|
> $625,500 |
> 95.00% |
105 bps |
|
Term ≤ 15 Years (no change) |
|
Base Loan Amount |
LTV |
Annual MIP |
|
≤ $625,500 |
≤ 90.00% |
45 bps |
|
≤ $625,500 |
> 90.00% |
70 bps |
|
> $625,500 |
≤ 78.00% |
45 bps |
|
> $625,500 |
78.01% – 90.00% |
70 bps |
|
> $625,500 |
> 90.00% |
95 bps |
Data integrity checks will be added to ConformX to support the new FHA annual MIP rate structures for loan terms over 15 years. In addition, the FHA Informed Consumer Choice Disclosure Notice (Cx41) will be modified to trigger an updated preparation month as well as “Monthly Mortgage Insurance Premium (MIP)” amount. Both sets of changes will be triggered for FHA Case Number Assignment Dates on or after January 26, 2015.
The updated ConformX data integrity checks and updated version of Cx41 to support the new rates will be in place January 14, 2015. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
January 13, 2015
DR 164214
TW 108641