FHA update: New mortgage insurance payment durations

FHA Update:

For loans with FHA case numbers assigned on or after June 3, 2013, FHA will change the duration the annual MIP is collected.

For any mortgages with LTV greater than 90%, FHA will assess the annual MIP until the end of the mortgage term or for the first 30 years of the term, whichever occurs first. 

For all mortgages regardless of their amortization terms, mortgages with LTV less than or equal to 90% LTV, the annual MIP will be assessed until the end f the mortgage term or for the first 11 years of the mortgage term, whichever occurs first.

So in plain English and for majority of FHA borrowers: If you put less than 10% down payment, you will pay the annual MIP for the LIFE OF THE LOAN. If you put 10% or more down payment, you will pay the annual MIP for the first 11 years.

FHA also increased the FHA annual MIP in April 1, 2013.

Link to the full HUD Mortgage Letter 2013-04

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Freddie Mac Announces Immediate Availability of Streamlined Modification for Delinquent Borrowers

MCLEAN, VA--(Marketwired - May 13, 2013) -  Freddie Mac (OTCQB: FMCC) today announced it is making its new Streamlined Modification program immediately available to all eligible borrowers nationwide in order to expedite financial relief for potentially thousands of distressed families. Freddie Mac's Streamlined Modification program had originally been scheduled to start on July 1, 2013.

News Quote"Today, Freddie Mac is giving a green light to its mortgage servicers to speed up financial relief for potentially thousands of families with delinquent mortgages across the nation. Now mortgage servicers can send eligible borrowers their Streamlined Modification trial period terms as soon as they are ready and borrowers can modify their loans by making the three trial period payments on time. No borrower documentation is needed. Freddie Mac is focused on adding momentum to the housing recovery by giving distressed borrowers more options to avoid foreclosure."

Following link directs you to the full announcement: Freddie Mac announcement

Following link directs you to the info site for the streamlined modification program: Freddie Mac Streamlined Modification