Apr 15, 2011
FHA to increase MIP
15 Apr 2011
Come April 18, the FHA will increase its annual mortgage insurance premium by 25 basis points on 30- and 15-year mortgages.
This move, announced in February in HUD’s Mortgage Letter 11-10, stated that the move will “ensure that FHA will continue its historic role of providing a home financing vehicle during during periods of economic volatility and its mission of helping under-served borrowers.” The FHA anticipates that
“this increase will have minimal impact on borrowers but will significantly strengthen the capital position” of FHA’s Mutual Mortgage Insurance Fund.