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New FHA guidelines

If someone does a streamline refinance after June 1,will they now have to pay MIP for life of loan? My buddy is doing a refi and was wondering.

Jesus whos going to pay 1.35% MIP for life of loan?? Well guess we know when the housing recovery comes to a skid this is going to dramatically affect FHA originations. So how will this help FHA when they lose 33% or more of new loan volume?
by sfranny February 7, 2013 12:36 PM


This Congress is a bunch of fukin morons
by sfranny February 7, 2013 12:38 PM



Do an honest comparison of a 640 or 660 score brw with conventional PMI to the FHA MI and the rates as well. You'll find the FHA rates being lower than fannie/fred offset the MI diff in a side by side pmt comparison

HUD either gets back in the black or we risk losing it altogether...much like the postal service....oh wait...

and don't blame congress...they know not what they do....seriously...they haven't a clue








by Dr. Branker February 7, 2013 12:57 PM


Diff is conventional MI will come off at some point and theres no UFMIP
by sfranny February 7, 2013 2:04 PM


Diff is conventional MI will come off at some point and theres no UFMIP
by sfranny February 7, 2013 2:05 PM


Diff is conventional MI will come off at some point and theres no UFMIP
by sfranny February 7, 2013 2:05 PM


Instead of dropping off at 78% and/or 5 years (depending on the loan) the MIP will be payable for the following time periods, effective for case numbers assigned on or after June 3, 2013:

The first 11 years of the loan term for LTV less than or equal to 90%

The first 30 years of the loan term for LTV greater than 90%



by oldbe February 7, 2013 2:59 PM


Diff is conventional MI will come off at some point and theres no UFMIP
by sfranny February 7, 2013 3:49 PM


As usual, since some head told you something, you believe the bullshit and make it all about you.


What this is for is to eliminate strategic defaults. First by collecting from defaulter under ALL circumstance.
Second to penalize those who do drop the insurance and then default for any reason. Drop the insurance and then lose the house may be punitive and criminal.

These rules are designed to put the blame squarely on the purchaser.

No one cares that franny thinks she's too weak to make a living.

It isn't about us. It's about closing loopholes.
by turdly February 7, 2013 4:17 PM


Currently the FHA annual MIP is not collected after 78% LTV or 5 years, depending on the loan details. However, the FHA insurance coverage continues for the term of the loan even after the annual MIP collection drops off.

FHA wants to collect MIP longer to help cover its losses. And since rates are at historic lows and FHA loans are assumable it is likely that loans being made now will be around longer and FHA can bring in more money with this change, provided the change does not drive everyone to private MI.

My guess is that there are enough higher risk borrowers around to keep FHA busy even with the increased rates and longer payment period for MIP. But the higher cost of FHA will undoubtedly chase away less risky borrowers. So FHA will be stuck in a cycle of attracting only higher-risk borrowers and needing to continually increase premiums to offset the ongoing losses.

If private MI is a better deal for a given customer (and they can qualify for conventional) no need to complain, just go for it.
by oldbe February 7, 2013 4:56 PM


Who cares! Go back too work, as this will have absolutley no affect on you as an LO.
by Vinnie The Leg Breaker February 7, 2013 6:55 PM


Why not make it risk based priced both for UFMIP and monthy MIP? Seems stupid to charge same MIP to a 740 score borrower as a 640 score. Kinda like they did years ago with the FHA Secure program the UFMIP was different based on FICO.
by sfranny February 7, 2013 8:14 PM


"Seems stupid to charge same MIP to a 740 score borrower as a 640 score." by sfranny February 7, 2013 8:14 PM

No doubt about it.
by oldbe February 8, 2013 9:58 AM


You have score confused with credit history.
Score of 740 is meaningless in many instances.
Guy with 15 year history and maintains a 620 through his family dieing in an uninsured fire is 10,000 times stronger than a two card 740 turd.


by turdly February 8, 2013 10:28 AM


Turdly,

When you are dealing with a pool of loans, FICO is a damn good predicter. Your example is a meaningless exception in the grand scheme of things. I do have to admit, I liked basing a loan decision on the factors you mention in the pre FICO era. But those days are long gone.

Franny

Of course they should charge the same MIP to a high score as they do a low score. It is the American way. Those High FICO borrowers need to pay their fair share.

FHA became the dumping ground for poor loans when the sub-prime market self destructed.
by YATI February 8, 2013 10:57 AM


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