Effective with new FHA case number assignments on or after July 14, 2008, FHA will implement risk-based premiums on one- to four-unit single family mortgages.
The premium matrix is shown below, replacing the premium matrix in Mortgagee Letter 00-38, which identifies the current mortgage insurance premiums for FHA’s single family programs.
The premium grid is based solely on the prospective borrower’s credit bureau score and the Loan-To-Value ratio
Entering the funding fee or monthly paid mortgage insurance into the Point file
- From the Borrower Information screen, click the MTG Insurance button.
- Enter the Funding Fee or Mortgage Insurance Percentage and click OK.
- For FHA/VA Loans - UpFront Mortgage Insurance/Funding Fee
- In the Up-Front Mortgage Insurance Premium / Funding Fee section, enter the MIP percentage into the MIP, FF field or select the default value from the dropdown list.
- For FHA/VA Loans - UpFront Mortgage Insurance/Funding Fee
-
- For Conventional Loans - monthly paid mortgage insurance
- In the Monthly Mortgage Insurance Premium section, enter the Mortgage Insurance Percentage or select the default value from the dropdown list.
- For Conventional Loans - monthly paid mortgage insurance
Entering up-front mortgage insurance into the default dropdown list.
- From the menu bar, select Utilities > Dropdown List > Mtg Insurance > Initial.
-
From the Dropdown List Mortgage Insurance > Initial window, click Add.
-
Enter the default value for the Up-Front Mortgage Insurance, based upon the FICO score and LTV range. After entering the value, press the <Space> bar and enter a description
(For Example: 1.25% LTV >90 FICO 680 - 850)
Click OK.
- Repeat steps 2 through 4 for all Up-Front Mortgage Insurance Percentages that range from a 300 - 850 credit score and less than or greater than a 90% LTV.
- The dropdown list can be selected from the Mtg Insurance button at the bottom of the Borrower Information screen.
Entering monthly paid mortgage insurance into a dropdown list
- From the menu bar, select Utilities > Dropdown Lists > Mtg Insurance > Renewal.
- From the Dropdown List Mortgage Insurance > Renewal screen, click Add.
- Enter the default value for the monthly paid mortgage insurance, based upon the FICO score and LTV Range. After entering the value, press the <Space> bar to enter a description.
(For Example: .55% LTV >90 FICO 680 - 850)
5. Repeat steps 2 through 4 for all monthly paid Mortgage Insurance Percentages that range from a 300 - 850 credit score and LTV range.