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march 2010\1 month until fha raises its up-front mip
1 month until FHA raisesits up-front MIP
March 10, 2010 - April 5 brings an increase in the up-front mortgage insurance premium to 2.25 percent for loans backed by the Federal Housing Administration, according to a reminder issued this week by FHA Commissioner David Stevens.
The FHA chief, in his third-ever message "from the Desk of David H. Stevens," recapped the policy changes taking place at FHA as part of a plan to build up the administration's capital reserves "and bring back private lending."
The policy changes include a request to Congress for authority to raise the maximum annual MIP; FHA says this will allow it to shift some of the up-front premium increase to the annual MIP.
Other policy changes are in store, including an increase in the minimum FICO score from 500 to 580 for borrowers to qualify for the minimum, 3.5 percent down payment on an FHA loan. Those with lower scores would have to pay 10 percent up front.
These changes and more, including limits on seller concessions and enforcement measures related to indemnification, are expected to be discussed in tomorrow's House Financial Institutions Subcommittee on Housing and Community Opportunity hearing on the FHA Reform Act of 2010. The proposal should be published soon in the Federal Register.