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Fha Mortgage changes Starting April 2013 PMI for life of loan?

This was in interesting development brought up at our last sales meeting...

FHA mortgages will now have PMI for the "life of loan" starting after April 2013
FHA Mortgagee Letter 2013-04, which says "The section of this Mortgagee Letter that increases the annual MIP is effective for case numbers assigned on or after April 1, 2013, except as noted below." That exception applies as follows:

"This Mortgagee Letter increases the annual MIP on all forward mortgages previously announced in ML 2012-4, except single family forward streamline refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009; the rate for those streamline transactions remains at the level announced in ML 2012-4." (Emphasis ours)

What is the official start date when the new "life-of-the-loan" MIP requirement begins? According to the FHA, the date for loans "with FHA case numbers assigned on or after June 3, 2013," is when "FHA will collect the annual MIP for the maximum duration permitted under statute."
Greg Chadwell
Real Estate Broker Wisconsin
5 yrs branch lending mgr TCF bank
5 yrs mortgage broker

  • April 20 2013 - Bay View
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