Loan Modification

FHA Mortgage Premium Change Delayed Until Oct. 4th

By Peter G. Miller

As we reported August 5th, the FHA said it would move to a new set of mortgage insurance premiums beginning September 7th. However, the start date has now been pushed back to October 4th, according to Vicki Bott, HUD’s deputy assistant Secretary.

?Last week, FHA Commissioner David H. Stevens announced plans for implementing FHA?s new mortgage insurance premium structure,” says Bott. “As we work to publish a Mortgagee Letter, it is our intention to announce that based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective October 4, 2010.

?Over this past week, the industry responded with support of the new fee structure, but voiced strong concern about having system changes ready in time to meet the original September 7, 2010 deadline. Since these system changes impact regulatory disclosures, lenders expressed they must have the additional time to implement and test systems. FHA took this feedback seriously and has accommodated the need for additional time.?

For a complete explanation of the changes to the FHA loan guidelines, please go to:

New FHA Fees To Start In September

Full post as published by FHA Mortgage Guide on August 14, 2010 (boomark / email).