Prominent in the legislation are reforms to the current mortgage insurance premium structure that increase the annual premium, a move that will increase FHA's capital reserves faster than increasing the upfront mortgage insurance premium
(and in the interest of the homeowner, not increase the mortgage loan-to-value [LTV] ratio).
20 are targeted to enhance the future performance of the FHA and include an increase in the upfront mortgage insurance premium
; an update to the combination of FICO[R] scores and down payments for new borrowers; a reduction of seller concessions to 3 percent from 6 percent; and the implementation of performance measures aimed at increasing lender enforcement.
566) on June 27, 1990, there is .5 percent annual surcharge added to the 3.8 percent upfront mortgage insurance premium
for mortgages with loan-to-value (LTV) ratios above 90 percent.
Tim Kepler, a loan officer with Land Home Financial in Danville, Calif., noted that the agency raised its upfront mortgage insurance premiums
from 0.5 percent of the loan amount to 1.15 percent earlier this year.
Late submission of upfront mortgage insurance premiums
failure to remit upfront mortgage insurance premiums
to HUD within 10 days of closing or funds disbursement;