HUD Reduces Monthly Mortgage Premium

    Summary of Annual MIP changes:

    Great news from HUD. They have reduced the monthly mortgage insurance premium. Why is this so amazing, you ask? Because, this will save customers a ton of money!

    HUD is reducing the annual MIP rates by 50 bps for most forward mortgages, effective for case numbers assigned on or after Monday, January 26, 2015. Save for Streamline Refis that were endorsed on or before May 31, 2009, the annual MIP rate for all loans with terms over 15 years will be reduced.

    When it comes to old case numbers for the purpose of obtaining a lower premium, the FHA will temporarily allow us to cancel — starting on Thursday, January 15, 2015. However, all Case Number Cancellation Requests must be presented under this temporary authority by 11:59 p.m., Eastern, on February 26, 2015. New case numbers cannot be ordered until the previous case number has been cancelled and confirmed in FHA Connection.

    When it comes to requests to cancel the old case number, the case number, loan number, and customer name must be emailed to CaseTransfer@churchillmortgage.com with the subject “MIP REDUCTION CANCELLATION – ML 2015-01.”

    Once an old case number is cancelled, and the Cancellation Request is processed by HUD AND the FHA Connection Case Query, the screen should show up as the “Last Action: Cancelled.” Once this occurs, the new case number can be ordered on or after January 26, 2015.

    For all the details regarding the HUD’s reduced monthly mortgage premium, consult the 

    Mortgagee Letter 15-01.

     

     

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