Posted by Calnotary on 4/17/13 6:46pm
Msg #466127

FHA guidelines have changed

since April 1st.

I was talking to a LO and she told me that is going to be a lot harder/more expensive to get a loan so does anybody here has a link to this info. Also starting June 1st are new changes too.

Sorry I'm typing this real quick. If some one knows please post. Thank you.

Reply by Calnotary on 4/17/13 6:48pm
Msg #466128

Found it, here it goes.

http://www.governmentrefinances.com/2013/01/31/fha-makes-major-changes-to-mip-starting-april-2013/

Reply by Gregory/CA on 4/17/13 6:48pm
Msg #466129

See Msg #462633 for the April 1st. I am not sure about the changes come June 1st as you mentioned.

Reply by ReneeK_MI on 4/18/13 5:48am
Msg #466171

link to FHA Mtgee Letter re: April 1 & June 3rd changes

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

I was trying to find the actual guidelines on HUD's site, but I got a headache. Navigating their site isn't recommended this early in the morning.

Reply by ReneeK_MI on 4/18/13 6:02am
Msg #466172

? for you, Gregory ...

Is the 92900-A form supposed to be an accurate/reliable disclosure of the number of months the MIP will be collected?

Reason I ask is - I had an FHA yesterday, a streamline w/ <78% LTV. 92900-A showed MIP for the entire life of the loan (30 years), but L/O explained to borrower that it would automatically be removed when he hit 78%.

My understanding is that's not exactly correct - my understanding is he will pay a minimum of 5 years, regardless of LTV, before it falls away. Still - doesn't the 92900-A normally reflect the projected amount of months to be collected? It's always nice when you get an Am Schedule for this, but of course - no Am Schedule in the pkg.

P.S. I do NOT ever, ever dispute what an L/O says to their borrowers - I sometimes will converse in private, but never in front of borrower. Mostly I like my job!

Reply by Gregory/CA on 4/18/13 1:30pm
Msg #466230

Re: ? for you, Gregory ...

Renee, my understanding is that the MIP is to remain for the life of the loan or until it is paid off or refinanced, as others have commented on already.

The 92900-A Field 12b does provide for a Term of Monthly Premium in total months. The last FHA loan I had was on 04/04/13 and it reflected 97 months vs. 360 months. My guess, is that not all companies have updated their system with this new requirement to populate the field correctly. I could be wrong.

Like you, if there is a LO present or provides instructions to the borrowers, I don't question it in front of the borrower(s). Did you talk to this particular loan officer about it and if so, what was there response? The LO could've been on automatic mode disclosing the previous 78% vs. the new MIP for life of the loan.

Reply by ReneeK_MI on 4/20/13 4:39am
Msg #466411

Re: ? for you, Gregory ...

Thanks for the reply and sorry for my delay (lost power for 2 days). The changes effective April 1st wouldn't have affected either of our loans, since they both would have had their case numbers assigned well in advance of April 1st (since they both closed recently). The effective date goes off the date the case number is assigned, no the closing date. Your 92900-A would seem to have been correct.

The one in my pkg, I believe, would be incorrect - stating 360 months (i.e. life of the loan). The question I have no answer for is - what if the 92900-A IS wrong? Will that form dictate the MIP terms, or will the actual guidelines overrule an incorrect form?

The L/O I spoke with (via phone call from the table - borrower questioning MIP) seemed on game, and I did diplomatically point out that the borrower wanted a definite end-date on the MIP, and I was unable to point that out, since the 92900-A showed 360 months, and I did not have an Am Schedule. So, L/O has been advised of that discrepancy, and L/O was provided the opportunity to give his borrower his own information - that concludes MY job. =)

Reply by Gregory/CA on 4/20/13 9:46pm
Msg #466498

Good Question, Renee

"The question I have no answer for is - what if the 92900-A IS wrong? Will that form dictate the MIP terms, or will the actual guidelines overrule an incorrect form?"

I will be on the lookout and see if I can find something. So far, I haven't come up with an answer.

Reply by Belinda/CA on 4/17/13 8:09pm
Msg #466138

Says borrower can no longer reach a point that they can stop

paying PMI. They will have to pay it until paid in full or refinanced to another program. That is a lot of money!

Reply by anotaryinva on 4/18/13 7:29am
Msg #466174

I had one two days ago, refi, Bo had taken out the original loan 2 years ago and had paid MIP during that time, he was hoping that those two years would count towards his required five year period of paying for the MIP. We called his LO who explained no, the clock started again and he would have to pay MIP for five years regardless of when the equity hit 78%. She went on to say that he had just made the cutoff of April 1st otherwise the MIP would have been required for the life of the loan. I guess those caught in this situation will need refi once they hit that magic 78% to get out of continuing the MIP insurance for the life of the loan.

Reply by TeriW/CA on 4/18/13 12:15pm
Msg #466218

Omg, that's crazy! Thanks for the info.