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HUD Mortgagee Letter
Suspension of Mortgagee Letter 2017-01 - Reduction of Federal Housing Administration (FHA) Annual Mortgage Insurance Premium (MIP) Rates
 
 
Citation:
ML 2017-07
Agency:
Housing and Urban Development
Type:
HUD Mortgagee Letter
Publish Date:
Jan 20, 2017
Keywords:
Source:
Citation:
ML 2017-07
Agency:
Housing and Urban Development
Type:
HUD Mortgagee Letter
Publish Date:
Jan 20, 2017
Keywords:
Source:
 

Summary

HUD Mortgagee Letter ML 2017-07 communicates that Mortgagee Letter 2017-01, reducing Mortgage Insurance Premiums for loans with Closing/Disbursement date on or after January 27, 2017, has been suspended indefinitely.

This Mortgagee Letter is effective immediately and this guidance applies to all FHA Title II forward mortgage programs except for mortgages insured under National Housing Act section 247 (Hawaiian Homelands).

HUD Mortgagee Letter


U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER


January 20, 2017

Mortgagee Letter 2017-07

To
All FHA-Approved Mortgagees
All Direct Endorsement Underwriters
All FHA Roster Appraisers
All FHA Roster Inspectors
All FHA-Approved 203(k) Consultants
All HUD-Approved Housing Counselors
All HUD-Approved Nonprofit Organizations
All Governmental Entity Participants
All Real Estate Brokers
All Closing Agents

 

Subject

Suspension of Mortgagee Letter 2017-01 -Reduction of Federal Housing Administration (FHA) Annual Mortgage Insurance Premium (MIP) Rates.

 

Purpose

This Mortgagee Letter (ML) communicates that Mortgagee Letter 2017-01, reducing Mortgage Insurance Premiums for loans with Closing/Disbursement date on or after January 27, 2017, has been suspended indefinitely. FHA will issue a subsequent Mortgagee Letter at a later date should this policy change.

 

Effective Date

This ML is effective immediately.

 

Affected Programs

This guidance applies to all FHA Title II forward mortgage programs except for mortgages insured under National Housing Act section 247 (Hawaiian Homelands.)

 

Affected Topics

This guidance affects Appendix 1.0 – Mortgage Insurance Premiums of the FHA Single Family Housing Policy Handbook 4000.1, and reinstates the Appendix in affect prior to the issuance of the update communicated in ML 2017-01.

 

Background

FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers. As such, more analysis and research are deemed necessary to assess future adjustments while also considering potential market conditions in an ever-changing global economy that could impact our efforts.

 

Mortgage Insurance Premiums, Appendix 1.0

The mortgage insurance premium rates as shown in Appendix 1.0 attached to this ML are reincorporated into the FHA Single Family Housing Policy Handbook 4000.1.

 

Information Collection

The information collection requirements contained in this document have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB control number 2502-0059 and OMB Control number 2502-0538. In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB control number.

 

Questions

Please address any questions about the topics addressed in this Mortgagee Letter to the FHA Resource Center at (800) 225-5342. Persons with hearing or speech impairments may reach this number via TTY by calling the Federal Relay Service at (800) 877-8339. For additional information on this Mortgagee Letter, please visit www.hud.gov/answers.

 

Signature

Genger Charles
General Deputy Assistant Secretary for Housing

 

Attachment

 

APPENDIX 1.0 – MORTGAGE INSURANCE PREMIUMS

Upfront Mortgage Insurance Premium (UFMIP)

All Mortgages: 175 Basis Points (bps) (1.75%) of the Base Loan Amount.

Exceptions:

  • Streamline Refinance and Simple Refinance Mortgages used to refinance a previous FHA-endorsed Mortgage on or before May 31, 2009
  • Hawaiian Home Lands (Section 247)
  • Indian Lands (Section 248)

Indian Lands (Section 248) do not require a UFMIP.

 

Annual Mortgage Insurance Premium (MIP)

Applies to all Mortgages except:

  • Streamline Refinance and Simple Refinance Mortgages used to refinance a previous FHA endorsed Mortgage on or before May 31, 2009
  • Hawaiian Home Lands (Section 247)

Hawaiian Home Lands (Section 247) do not require Annual MIP.

Mortgage Term of More Than 15 Years

Base Loan Amount

LTV

MIP (bps)

Duration

Less than or equal to $625,500

≤ 90.00%

80

11 years

> 90.00% but ≤ 95.00%

80

Mortgage term

> 95.00%

85

Mortgage term

Greater than $625,500

≤ 90.00%

100

11 years

> 90.00% but ≤ 95.00%

100

Mortgage term

> 95.00%

105

Mortgage term

Mortgage Term of Less than or Equal to 15 Years

Base Loan Amount

LTV

MIP (bps)

Duration

Less than or equal to $625,500

≤ 90.00%

45

11 years

> 90.00%

70

Mortgage term

Greater than $625,500

≤ 78.00%

45

11 years

> 78.00% but ≤ 90.00%

70

11 years

> 90.00%

95

Mortgage term

 

 

Streamline Refinance, Simple Refinance:

For refinance of previous Mortgage endorsed on or before May 31, 2009

UFMIP: 1 (bps) (.01%) All Mortgages

All Mortgage Terms

Base Loan Amount

LTV

Annual MIP (bps)

Duration

All

≤ 90.00%

55

11 years

> 90.00%

55

Mortgage term

For Mortgages where FHA does not require an appraisal, the value from the previous Mortgage is used to calculate the LTV.

 

Hawaiian Home Lands Section 247

Hawaiian Home Lands Upfront MIP (UFMIP)

 

Loan Term in Years

 

≤18

>18 and ≤22

>22 and ≤25

>25

MIP Financed

2.400%

3.000%

3.600%

3.800%

MIP not Financed

2.344%

2.913%

3.475%

3.661%

Annual MIP is not assessed on Section 247 Mortgages.

 



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