Loan Modification

On borrowers whose loan-to-values are no more than 95 percent, HUD can charge an annual FHA premium of 1.5 percent of the remaining principal balance. The limit was increased from 0.50 percent.

On loans in excess of 95 percent LTV, HUD was authorized to boost the annual FHA premium to 1.55 percent, up from the prior limit of 0.55 percent... HUD is lowering up-front premiums to 100 basis points on purchase and refinance transactions. But the annual premiums are being raised to 85 BPS on loans with LTVs up to 95 percent and 90 BPS for LTVs above 95 percent.