Dear Licensed Partner,
On August 29th, 2017, FHA released Mortgagee Letter (2017-12) revising the initial and annual Mortgage Insurance Premium (MIP) rates and Principal Limit Factors (PLF) for all HECMs.
Effective for all HECMs with FHA case numbers assigned on or after October 2nd, 2017, following changes apply:
1. The Initial Mortgage Insurance Premium (MIP) rate is changed to 2.00% of the Maximum Claim Amount (MCA). The initial MIP rate is applicable to all borrowers and is no longer associated with disbursements made at closing or during the first 12-months of the HECM.
2. The Annual Mortgage Insurance Premium (MIP) rate is changed to 0.50% of the outstanding mortgage balance.
3. The Principal Limit Factors (PLFs) have also been revised. Click here to access the PLFs table.
18000 Studebaker Road, Suite 200
Cerritos, CA 90703
Phone: (800) 453-7884
This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.