MORTGAGE LOAN COMPLIANCE®

Most of the new FHA guidelines outlined Wednesday will go into effect this spring. The Federal Housing Administration Commissioner, David Stevens, did not provide any insight into how much money the following changes will raise for the FHA reserve fund.

· A 10% down-payment will be required for borrowers with FICOs of less than 580.

· The Mortgage Insurance Premium (MIP) will be increased in a few months from the current charge of 1.75 basis points.

· FHA will allow borrowers to continue financing the upfront MIP.

· And seller concessions will be reduced to 3% from 6%.

The agency also will pursue legislative authority to allow flexibility to bring the annual premium, which borrowers pay on a monthly basis, higher.

The Federal Housing Administration, which is trying to bolster its depleted cash reserves, unveiled tighter underwriting guidelines Wednesday morning, including a hefty down-payment for low FICO score borrowers and an increase in the upfront mortgage insurance premium to 225 basis points. The premium is currently 55 basis points for low down-payment loans that are popular with borrowers.

_______________________

Mortgage Loan Compliance® | The Forensic Loan Audit Company

For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.

Call Today 1-866-966-6615 or Visit www.ml-compliance.com