|When Mortgagee Letter 2011-10 was issued, it did not address forward mortgage amortization terms of 15 years or less when the loan-to-value (LTV) ratios at loan origination are at 78 percent or less. Currently the annual MIP is canceled for mortgages with amortization terms of 15 years or less when the LTV reaches 78 percent. Therefore, this Mortgagee Letter confirms that Annual Mortgage Insurance Premiums are not charged for all forward mortgages with |
Amortization terms of 15 years or less, and
LTVs at or below 78 percent at the time of origination
HUD Handbook 4155.2 will be updated to reflect that the annual MIP terminates for mortgages with amortization terms of 15 years or less when the LTV reaches 78 percent and that no annual MIP is charged when the initial LTV for such mortgages is at or below 78 percent. There are no other changes to the Annual Mortgage Insurance Premiums, and there are no changes to the Upfront Mortgage Insurance Premium (UFMIP).
The chart below is effective for case numbers assigned on or after April 18, 2011 for forward mortgage amortization terms.
Mortgage Insurance Premiums
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