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Bailout

: Calculated Risk

FHA Reform Bill Passes House

By Anonymous

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Just an update on H.R. 5072: FHA Reform Act of 2010

The bill passed in the house 406-4. This bill has several provisions, but a key for the housing market is the increase in the maximum annual premium payments for mortgage insurance.

The current maximum is an annual premium of 0.50% of the outstanding principal balance for loans with the original principal obligation under 95% LTV, and 0.55% for loans with the original principal obligation over 95% LTV.

This legislation will increase the maximums to 1.50% and 1.55% respectively.

The proposed effective date is September 30, 2010. There is no senate version yet.

Full post as published by Calculated Risk on June 13, 2010 (boomark / email).

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