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Bulletin W13-022 – Upcoming Revisions of FHA’s Policies Regarding MIP

March 14, 2013Bulletins

Topic included in Bulletin W13-022:

  • Upcoming changes to the Mutual Mortgage Insurance Fund
  • FHA is:
    • Revising the period of assessing the annual MIP,
    • Removing the exemption from the annual MIP for loans with terms of 15 years or less and LTV ratios of less than or equal to 78% at origination; and
    • Increasing the annual MIP on all forward mortgages except single family forward streamline refinance transactions that refinance existing FHA loans that were endorsed on or before May 31, 2009.
  • The changes above are effective for case numbers assigned on or after April 1, 2013, except as:
    • Revision to the period assessing the annual MIP
    • Removal of the exemption from the annual MIP for loans with terms of 15 years or less and LTVs of less than or equal to 78% at origination,
    • Increase in the annual MIP for mortgages with terms less than or equal to 15 years and LTV ratios less than or equal to 78% at origination.
  • Loans with case numbers assigned on or after June 3, 2013, FHA will collect the annual MIP for maximum duration permitted under the statue.
    • See tables within in Bulletin for terms
  • Guidelines and Matrices are in the process of being updated. 
    • A separate bulletin announcing the update will be sent

Download: Bulletin – W13-022 (PDF)

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