FHA's new premium reduction goes into effect today...

Today, the FHA’s 50 basis point mortgage insurance premium reduction goes into effect. FHA expects a high volume of case number assignments beginning today, so lenders may experience slower than normal processing times.


FHA's new annual premium rates take effect today, January 26, 2015.  According to the FHA's FAQ, borrowers with case numbers assigned on and after today will be eligible for reduced annual mortgage insurance premiums.  In an effort to encourage homebuyers to purchase their first home over the next three years, the FHA has reduced annual premiums new borrowers will pay by half a percent.

The FHA Resource Center Bulletin reports that due to the high volume of case number assignments, they're experiencing intermittent availability.

INFORMATION RESOURCES:

FHA Press Release
Case Number Cancellation Instructions
FAQ about MIP Reduction
FHA resource center (search by ML 15-01)
Mortgagee Letter 2015-01
 

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