U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSINGFEDERAL HOUSING COMMISSIONER

January 20, 2017
Mortgagee Letter 2017-07

To

All FHA-Approved Mortgagees
All Direct Endorsement Underwriters
All FHA Roster Appraisers
All FHA Roster Inspectors
All FHA-Approved 203(k) Consultants
All HUD-Approved Housing Counselors
All HUD-Approved Nonprofit Organizations
All Governmental Entity Participants
All Real Estate Brokers
All Closing Agents

Subject

Suspension of Mortgagee Letter 2017-01 -Reduction of Federal Housing
Administration (FHA) Annual Mortgage Insurance Premium (MIP) Rates

Purpose

This Mortgagee Letter (ML) communicates that Mortgagee Letter 2017-01,
reducing Mortgage Insurance Premiums for loans with Closing/Disbursement
date on or after January 27, 2017, has been suspended indefinitely. FHA will
issue a subsequent Mortgagee Letter at a later date should this policy change.

Effective Date

This ML is effective immediately.

Affected
Programs

This guidance applies to all FHA Title II forward mortgage programs except
for mortgages insured under National Housing Act section 247 (Hawaiian
Homelands.)
Continued on next page

www.hud.gov

espanol.hud.gov

 Mortgagee Letter 2017-07

Affected Topics

This guidance affects Appendix 1.0 – Mortgage Insurance Premiums of the
FHA Single Family Housing Policy Handbook 4000.1, and reinstates the
Appendix in affect prior to the issuance of the update communicated in ML
2017-01.

Background

FHA is committed to ensuring its mortgage insurance programs remains
viable and effective in the long term for all parties involved, especially our
taxpayers. As such, more analysis and research are deemed necessary to
assess future adjustments while also considering potential market conditions
in an ever-changing global economy that could impact our efforts.

Mortgage Insurance Premiums, Appendix 1.0
The mortgage insurance premium rates as shown in Appendix 1.0 attached to
this ML are reincorporated into the FHA Single Family Housing Policy
Handbook 4000.1.

Information
Collection

The information collection requirements contained in this document have
been approved by the Office of Management and Budget (OMB) under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB
control number 2502-0059 and OMB Control number 2502-0538. In
accordance with the Paperwork Reduction Act, HUD may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless the collection displays a currently valid OMB control
number.

Questions

Please address any questions about the topics addressed in this Mortgagee
Letter to the FHA Resource Center at (800) 225-5342. Persons with hearing
or speech impairments may reach this number via TTY by calling the Federal
Relay Service at (800) 877-8339. For additional information on this
Mortgagee Letter, please visit www.hud.gov/answers.

Signature

Genger Charles
General Deputy Assistant Secretary for Housing

Attachment

2

 APPENDIX 1.0 – MORTGAGE INSURANCE PREMIUMS
Upfront Mortgage Insurance Premium (UFMIP)
All Mortgages: 175 Basis Points (bps) (1.75%) of the Base Loan Amount.
Exceptions:
 Streamline Refinance and Simple Refinance Mortgages used to refinance a previous
FHA-endorsed Mortgage on or before May 31, 2009
 Hawaiian Home Lands (Section 247)
 Indian Lands (Section 248)
Indian Lands (Section 248) do not require a UFMIP.

Annual Mortgage Insurance Premium (MIP)
Applies to all Mortgages except:
 Streamline Refinance and Simple Refinance Mortgages used to refinance a previous FHA
endorsed Mortgage on or before May 31, 2009
 Hawaiian Home Lands (Section 247)
Hawaiian Home Lands (Section 247) do not require Annual MIP.
Mortgage Term of More Than 15 Years
Base Loan Amount
LTV
MIP (bps)
Duration
Less than or equal to
≤ 90.00%
80
11 years
$625,500
> 90.00% but ≤ 95.00%
80
Mortgage term
> 95.00%
85
Mortgage term
Greater than $625,500 ≤ 90.00%
100
11 years
> 90.00% but ≤ 95.00%
100
Mortgage term
> 95.00%
105
Mortgage term
Mortgage Term of Less than or Equal to 15 Years
Base Loan Amount
LTV
MIP (bps)
Duration
Less than or equal to
≤ 90.00%
45
11 years
$625,500
> 90.00%
70
Mortgage term
Greater than $625,500 ≤ 78.00%
45
11 years
> 78.00% but ≤ 90.00%
70
11 years
> 90.00%
95
Mortgage term

Streamline Refinance, Simple Refinance:
For refinance of previous Mortgage endorsed on or before May 31, 2009
UFMIP: 1 (bps) (.01%) All Mortgages
All Mortgage Terms
Base Loan Amount
LTV
Annual MIP (bps)
Duration
All
≤ 90.00%
55
11 years
> 90.00%
55
Mortgage term
For Mortgages where FHA does not require an appraisal, the value from the previous
Mortgage is used to calculate the LTV.

3

 Hawaiian Home Lands Section 247
Hawaiian Home Lands Upfront MIP (UFMIP)
Loan Term in Years
≤18
>18 and ≤22
>22 and ≤25
2.400%
3.000%
3.600%
2.344%
2.913%
3.475%

MIP Financed
MIP not
Financed
Annual MIP is not assessed on Section 247 Mortgages.

4

>25
3.800%
3.661%