www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

 
October 12, 1994
 
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
 
MORTGAGEE LETTER 94-48
 
     TO:  ALL APPROVED MORTGAGEES
 
        SUBJECT:  Single Family Loan Production - Risk-Based Mortgage
                          Insurance Premium
 
The Department is pleased to announce that the risk-based annual
premium charges described in Mortgagee Letter 94-14 (March 31, 1994)
will remain in effect until further notice.  The annual premium
charges originally scheduled to take effect October 1, 1994, (FY 1995)
are thus superseded by Mortgagee Letter 94-14.  The annual and upfront
mortgage insurance premium schedule shown in that letter is reprinted
as an attachment for your convenience.
 
Mortgages insured under the following Sections of the National
Housing Act are affected by this mortgage insurance premium schedule:
203(b), Home Mortgage Insurance; 203(h), Mortgage Insurance for
Disaster Victims; 203(i), Home Mortgage in Outlying Areas; 203(n),
Single Family Cooperative Program; 245(a), GPMs and GEMs (except on
condominiums); 251, Adjustable Rate Mortgages (except on
condominiums); 244, Coinsurance.
 
                If you have any questions concerning this Mortgagee Letter,
please contact your local HUD Office.
 
Sincerely yours,
 

Nicolas P. Retsinas
Assistant Secretary for Housing-
Federal Housing Commissioner
 
     Attachment
 
                                        UPFRONT AND ANNUAL MIP RATES
                        FOR MORTGAGES CLOSED ON OR AFTER APRIL 17, 1994
 
               _________________________________________________
 
                    UPFRONT AND ANNUAL MIP PREMIUM CHART
                      MORTGAGE TERM MORE THAN 15 YEARS*
 
                         _________ Annual _____________
 
                 Upfront     L-T-V Ratio      Premium     Years
               =================================================
                 2.25%       89.99 & Under     .50%         7
               _________________________________________________
                 2.25%       90.00-95.00       .50%        12
               _________________________________________________
                          2.25%       95.01 & Over      .50%        30
                        =================================================
 
                        *Streamline refinances of mortgages closed
                                before July 1, 1991, where the new mortgage
                                will carry a term greater than 15 years, are
                                subject to an Upfront MIP of 3.8 percent, but
                                are not subject to the annual premium.
               _________________________________________________
 
               _________________________________________________
 
                    UPFRONT AND ANNUAL MIP PREMIUM CHART
                       MORTGAGE TERM 15 YEARS OR LESS*
 
                         _________ Annual _____________
 
                 Upfront     L-T-V Ratio      Premium     Years
               =================================================
                 2.00%       89.99 & Under     None        n/a
               _________________________________________________
                 2.00%       90.00-95.00       .25%         4
               _________________________________________________
                          2.00%       95.01 & Over      .25%         8
                        =================================================
 
                        *Streamline refinances of mortgages closed
                                before July 1, 1991, where the new mortgage
                                will carry a term of 15 years or less, are
                                subject to an Upfront MIP of 2.4 percent,
                                but are not subject to the annual premium.
               _________________________________________________