Posted by ME/NJ on 5/18/13 11:11am
Msg #470422

New PMI forms already out in loan packages

No Refunds- 5 years.. seeing them from a couple of banks now.

Reply by Linda Juenger on 5/18/13 1:00pm
Msg #470426

Saw my first PMI loan that it is on there for 360 months, life of loan. How sad.

Reply by bfd110_IN on 5/18/13 8:51pm
Msg #470456

Just for FYI yall are talking about 2 different loans... Life of loans if for FHA now (didnt think that took effect though until June 1st) The 5 year disclosure is for loans that are HPML loans. Most lenders will be telling everyone on all disclosures in case they do HPML loans. Called CYA..

Truthfully in todays market really should see an HPML on a traditional mortgage. Only time we will see those is with seconds or lines of credits due to low loan amounts and fees. Not to say it cant happen on a first mortgage though.

Reply by Stephen Bronson on 5/18/13 9:23pm
Msg #470459

I'm sorry, maybe I missed the boat here, but what does PMI stand for?

Reply by Sylvia_FL on 5/18/13 10:01pm
Msg #470465

PMI = Private Mortgage Insurance n/m

Reply by Bear900/CA on 5/19/13 6:45am
Msg #470473

Acronyms can be a killer -

@ ME/NJ – Assuming you’re referencing FHA, the term “refund” associated with “5 years” is a bit confusing. A FHA refund applies to the Up-front mortgage insurance premium which is financed into the loan. If the loan is paid off early there may be a refund of the UFMIP on a graduating scale since the premium is generally financed into the loan. I don't think that has gone away.

The 5 year rule was that MIP (not UFMIP) had to remain in force for a minimum of 5 years prior to now. Now it’s for the life of the loan, or 11 years for loans that are 15 years or under 78%LTV. There is a chart here:

http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf

@bfd110 – You are right, a HPML (higher-priced mortgage loan) is a totally different animal. You don’t see it often. It is typically when the APR exceeds 1.5% of the APOR (Average Prime Offer Rate).

BUT – Since you brought it up, there is a concern now that now that adding the FHA MIP for the life of the loan may push the new FHA’s APR into the HPML category. Here is a good discussion:

http://www.mortgagenewsdaily.com/channels/pipelinepress/05132013-bank-mergers-acquisitions.aspx

The June 3rd, 2013 effective date applies to FHA loans with case numbers assigned after that date.

Reply by Bear900/CA on 5/19/13 7:00am
Msg #470474

Meant to add...

Meant to add that the 5 year disclosure on (HPML) Higher Priced Mortgage Loans I believe pertains to the requirement to keep escrows (impounds) in place for 5 years without the option to cancel them.

The "5 years" mentioned by the OP may have caught your eye to reference a HPML.

The reference may have been to the "5 years" MIP requirement which will still be seen on FHA loans with earlier case numbers.

Reply by bfd110_IN on 5/19/13 10:47am
Msg #470495

thanks bear

You went more into detail than I did. Glad you did for everyones sake.