HUD Mortgagee Letters related to Ohio FHA Streamline Refinance Transactions
HUD Mortgagee Letter 12-04, released March 6, 2012.
This mortgagee letter addresses the changes in Up Front Mortgage Insurance Premiums and Annual Mortgage Insurance Premiums (MIP) for FHA Streamline Refinance transactions. The revised mortgage insurance premiums are effective with FHA Case Numbers assigned on or after June 11, 2012.
HUD Mortgagee Letter 11-11, released February 14, 2011
This mortgagee letter provides clarification and updates existing guidance concerning refinance transactions. A few of the highlights from this mortgagee letter are:
- borrowers must be current on the mortgage being refinanced for the month due prior to the month in which they close the refinancing and for the month in which they close.
- clarified that the Net Tangible Benefit requirement is met when there is a 5% reduction in the Principal and Interest (P&I) and Mortgage Insurance Premium (MIP) payment on the new loan.
- specifies that reducing the term of the mortgage, in and of itself, is not a net tangible benefit.
- on the date the FHA case number is assigned the borrower must have made at least six payments on the FHA mortgage being refinanced and at least 210 days must have passed from the closing date of the mortgage being refinanced.
The above are the 2 most recent Mortgagee Letters that impact FHA Streamline Refinance transactions. There are earlier Mortgagee Letters, but they have little, if any, impact on Streamline Refinances.