2400 Risk-Based Premiums for FHA Mortgage Insurance

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

1. From the Borrower Information screen, click the MTG Insurance button.
2. 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.

1. • 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.

Entering up-front mortgage insurance into the default dropdown list.

1. From the menu bar, select Utilities > Dropdown List > Mtg Insurance > Initial or Renewal.
   
   
       
2. From the Dropdown List Mortgage Insurance > Initial window, click Add.
3. 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.

1. 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.
2. 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

1. From the menu bar, select Utilities > Dropdown Lists > Mtg Insurance > Renewal.
2. From the Dropdown List Mortgage Insurance > Renewal screen, click Add.
3. 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)

   4.  Click OK.
   5.  Repeat steps 2 through 4 for all monthly paid Mortgage Insurance Percentages that range from a 300 - 850 credit score and LTV range.