Reminder of the June 3, 2013 Effective Date for Mortgagee Letter (ML) 2013-04 – Revision of Period for Assessing Annual Mortgage Insurance Premium (MIP); Changes to Annual MIP for Mortgages with Terms of 15 Years or Less and Loan to Value (LTV) Ratios of 78 Percent or Less at Origination
Consistent with FHA’s ongoing efforts to strengthen the Mutual Mortgage Insurance Fund, FHA is: revising the period for assessing the annual MIP.
FHA is removing the exemption from the annual MIP for loans with terms of 15 years or less and Loan to Value (LTV) ratios of less than or equal to 78 percent at origination.
FHA is 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.
For loans with FHA case numbers assigned on or after June 3, 2013, FHA will collect the annual MIP for the max. duration permitted under statute.
For all mortgages regardless of their amortization terms, any mortgage involving an original principal obligation (excluding financed Up-Front MIP (UFMIP)) less than or equal to 90 percent LTV; the annual MIP will be assessed until the end of the mortgage term or for the first 11 years of the mortgage term, whichever occurs first.
For any mortgage involving an original principal obligation (excluding financed UFMIP) with an LTV greater than 90 percent, FHA will assess the annual MIP until the end of the mortgage term OR for the first 30 yrs. of the term, whichever occurs first.
I am reposting the chart along with another video
Loan Term Greater Than 15 Years
| Base Loan Amount | LTV | Old MI | New MI |
| <$625,500 | <95.00% | 120 bps | 130 bps |
| <$625,500 | >95.00% | 125 bps | 135 bps |
| >$625,500 | <95.00% | 145 bps | 150 bps |
| >$625,500 | >95.00% | 150 bps | 155 bps |
Loan Term 15 Years or Less
| Base Loan Amount | LTV | Old MI | New MI |
| <$625,500 | 78-01% – 90.00% | 35 bps | 45 bps |
| <$625,500 | >90.00% | 60 bps | 70 bps |
| >$625,500 | 78-01% – 90.00% | 60 bps | 70 bps |
| >$625,500 | >90.00% | 85 bps | 95 bps |