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

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)