IMPORTANT REMINDER: Pull Case Numbers Prior To April 5, 2010

IMPORTANT REMINDER: Pull Case Numbers Prior To April 5, 2010 -

On January 21, 2010, HUD issued Mortgagee Letter 2010-02, Increase in Upfront Premiums for FHA Mortgage Insurance. Effective on all case numbers assigned on or after April 5, 2010, the new upfront mortgage insurance premium will increase to 2.25 percent. This policy change will affect all purchase money and refinance transactions, including FHA-to-FHA credit qualifying and non-credit qualifying streamlined refinance transactions.

Please note that Monday is the 5th so pull case numbers as soon as possible!

It is extremely important that the UFMIP amount is disclosed properly on Block 3 of the GFE. Failure to disclose the correct fee will not constitute a “changed circumstance”. The GFE cannot be revised to reflect the higher premium and will be subject to the 10% tolerance at settlement.

For a copy of our Compliance Alert 2010-01 – Increase in Upfront Premiums for FHA Mortgage Insurance On January 21, 2010, HUD issued Mortgagee

If I can be of any assistance to you, please let me know.

Jim Melchior

(502) 618-0529

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