Subject: ML 11-10 Reminder

Attachments: 11-10ml.pdf

FHA Premium Increase Reminder:

A 25 basis point increase to the Annual Mortgage Insurance Premiums for forward mortgage amortization terms is effective for all case numbers assigned on or after April 18, 2011. There are also new procedures effective April 18, 2011 for:

· Requesting case numbers, and

· Automatic case number cancellation

Beginning April 18, 2011, FHA systems will automatically cancel any uninsured case number where there has been no activity for 6 months since the last action. Please see Mortgagee Letter 2011-10 for more details.

For a report on case numbers that will be automatically cancelled the following month, access FHA Connection/Single Family Origination/Origination Reports. This report will be available for downloading into Microsoft Excel. 

The Upcoming Annual Mortgage Insurance Premiums (MIP) Changes and Mortgages with Terms of 15 Years or Less

This message is to inform lenders that HUD’s Single Family Premium Collection System (SFPCS) will not bill for Annual MIP on a mortgage with:

· a term of 15 years or less, AND

· a loan-to-value ratio (LTV) at or below 78 percent at the time of origination.  

For example, if a lender closes a mortgage with a 15 year term at 78 percent LTV, SFPCS will not bill for the Annual MIP for that mortgage.  

A mortgagee letter will be issued informing lenders that Annual MIP is not applicable for mortgages with terms of 15 years or less where the LTV at the time of origination is at or below 78 percent.

For FHA technical support on FHA Premiums or any other FHA issue, please email at: info@fhaoutreach.com or visit: http://www.fhaoutreach.gov/FHAFAQ

AND

Guidance for FHA Lenders on TOTAL Scorecard:

If TOTAL Scorecard issues a referral to manual underwriting based on the presence of one or more disputed accounts, lenders should ignore the TOTAL finding to refer the account to manual underwriting in any of the following circumstances:

1. The disputed account has a zero balance

2. The disputed account is marked as “paid in full”, or “resolved”

3. The disputed account is both

a. less than $500, and

b. more than 24 months old

Thank you!!!!

J. Whitney Barth

VP Operations

Gateway Mortgage Group LLC

4/15/2011