Lenderama Mortgage Blog

FHA Mortgage Insurance Premium Changes 2012

Up Front and Annual Mortgage Insurance Premium (UFMIP and annual MIP) Increases for all FHA Loan transactions and Decreased for Certain Streamline transactions.

As announced March 6th, 2012 in Mortgagee Letter 12-4 and illustrated in the chart below.

Up Front and Annual Mortgage Insurance Premium (UFMIP and annual MIP) Increases.FHA logo

FHA increased the upfront mortgage insurance premium (UFMIP) by .75 bps for all purchase and refinance transactions with case numbers assigned on or after April 9, 2012. This increase applies regardless of the amortization term or LTV ratio.  FHA will continue to permit financing of this charge into the mortgage and will continue to calculate actual premium charges against the base loan amount before adding any financed UFMIP.

FHA increased the annual mortgage insurance premium (MIP) by .10 bps for all purchase and refinance transactions with case numbers assigned on or after April 9, 2012.

 

FHA Mortgage Insurance Premium Changes 2012

Mortgage Insurance Premiums
Loans > 15 years
Case #’s prior to April 8, 2012 UFMIP=100bps
Case #’s on or after April 9, 2012 UFMIP = 175bps
Annual Premium
LTV Case #s Through April 17, 2011 Case #s On/After
April 18, 2011 through April 8, 2012
Case #s On/After
April 9, 2012
<=95.00 percent 85 bps 110 bps 120bps
>95.00 percent 90 bps 115 bps 125bps
Loans <= 15 years and above 78%
Case #’s prior to April 1, 2012 UFMIP=100bps
Case #’s on or after April 1, 2012 UFMIP = 175bps
Annual Premium
LTV Case #s Through April 17, 2011 Case #s On/After April 18, 2011 through
April 8, 2012
Case #s On/After
April 9, 2012
<=90.00 percent None 25 bps 35bps
>90.00 percent 25 bps 50 bps 60bps

Note: SF forward mortgages with amortization terms of 15 years or less, and a loan-to-value (LTV) ratio of 78 percent or less, remain exempt from the Annual MIP (see Mortgagee Letter 2011-35).

Increase to Annual Mortgage Insurance Premium on Mortgages with a High Outstanding Base Loan Amount

FHA is also exercising its pre-existing statutory authority to add an additional 25 bps to mortgages with base loan amounts exceeding $625,500. This change is effective for case numbers assigned on or after June 11, 2012.

Note: Jumbo/High Balance guidelines will be updated at a later date to reflect the June changes.

Term >15 Years
Base Loan Amount LTV Effective Annual MIP
< $625,500 < 95% June 11, 2012 120bps
< $625,500 > 95% June 11, 2012 125bps
Above $625,000 < 95% June 11, 2012 145bps
Above $625,000 > 95% June 11, 2012 150bps
Term <= Years with LTV above 78%
< $625,500 < 95% June 11, 2012 35bps
< $625,500 > 95% June 11, 2012 60bps
Above $625,000 <=90% June 11, 2012 60bps
Above $625,000 >90% June 11, 2012  

STREAMLINE TRANSACTIONS:

Note: Streamline guidelines will be updated at a later date to reflect the June changes.

Decrease to Annual Mortgage Insurance Premium on Certain Streamline Refinance Transactions

For all SF Forward Streamline Refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the Annual MIP will be 55 bps, regardless of the base loan amount. The endorsement date is on the Case Query screen in FHA Connection. This change is effective for case numbers assigned on or after June 11, 2012.

Decrease to Up-Front Mortgage Insurance Premium on Certain Streamline Refinance Transactions

For all SF Forward Streamline Refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009, the UFMIP will decrease from 1 percent to 0.01 percent of the base loan amount. The endorsement date is on the Case Query screen in FHA Connection. This change is effective for case numbers assigned on or after June 11, 2012.

TexasMortgageLender.com

May 4, 2012 by · 2 Comments

About Paul

Paul Bayarena is a Texas Mortgage Lender, who originally joined Austin Capital Mortgage in 2001, after leaving Janus Capital, and quickly became one of their top mortgage consultants. Mr. Bayarena takes a financial planning approach when consulting his clients, understanding that each client is unique in their long term and short term needs. In doing so, Mr. Bayarena has established long term relationships with his clients, which has allowed him to become a referral based consultant. Mr. Bayarena served as President and Partner of Apollo Mortgage Group, LLC for six year before returning to Austin Capital Mortgage. He has established and maintained strong relationships throughout the mortgage and real estate industry, and is readily recognized for his innovative thinking. Paul Bayarena served in the United States Marine Corps Infantry from 1990 to 1996. He has held his Series 6 and 63, Texas Mortgage Broker and Loan Officer’s License, and Texas Real Estate License.

Comments

2 Responses to “FHA Mortgage Insurance Premium Changes 2012”
  1. Chris says:

    There’s no way around it. Without substantial down payments, buyers will have to pay increased mortgage insurance premiums. Even though it protects the mortgage provider, it hurts the customer’s pocketbook.

  2. Still most of the borrowers who might like to use the program to refinance their mortgages are facing substantial hurdles. You need to have an unblemished record of on-time mortgage payments for the last 12 months. Maybe you were late occasionally a couple of years back. That’s OK. But the last 12 months need to be pristine.

Leave a Comment