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 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.
May 4, 2012 by Paul Bayarena · 2 Comments
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.
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.
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.