As announced in HUD Mortgagee Letter 2010-02), effective for FHA loans with case numbers assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium (UFMIP) of 2.25%. This policy change will increase premiums for purchase money and refinance transactions, including streamline refinance transactions.
Ø Applications that do not have an FHA case number assignment date prior to April 5, 2010 will be subject to the new up front mortgage insurance premium (UFMIP) factors.
Ø Applications that are disclosed with the lower UFMIP factors and do not have a case number assignment date prior to April 5, 2010 will be required to re-disclose to increase the UFMIP to the borrower within 3 days of the change circumstance event, or no later than April 8, 2010 to comply with Regulation X.
Ø FHA programs NOT impacted by the new UFMIP factors at this time are listed below.
o 248 Indian Reservations
o 247 Hawaiian Homelands
Please note: There are no other changes to the FHA loan program that will go into effect on April 5, 2010.
Leave a Reply