Important – FHA Mortgage Net Branch Notice – Important

The deadline is upon us for the increase in the upfront mortgage insurance for FHA loans.  All net branch manager, loan officers, processors and independent owners need to be aware of this information.

From HUD:
Lenders are reminded that effective for FHA loans for which the case number

is assigned on or after April 5, 2010, FHA will collect an upfront mortgage

insurance premium of 2.25 percent. This policy change will increase premiums

for purchase money and refinance transactions, including FHA-to-FHA credit-

qualifying and non-credit qualifying streamlined refinance transactions. For

more detailed information on this premium increase, please see Mortgagee

Letter 2010-02 at:

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-02ml.pdf

Lenders should make every effort to order case numbers early in the week of

March 29, 2010, since it is possible that case numbers requested on Friday or

Saturday may not be assigned prior to April 5, 2010, and therefore, be

subject to the higher premium.

If your branch is sitting on loans you need to register them now for your borrowers to take advantage the current lower upfront mortgage insurance premium.

If you would  like to know more about our net branch partner program visit our Frequently Asked Questions page.