New Mortgagee Letter 2008-40 addresses some major changes to FHA refinance transactions.
Effective with Case Numbers issued on or after Jan 1st 2009:Highlights of the Mortgagee Letter are:
1. Maximum LTV for most types of refinances will be 97.75% ( Base loanamount; prior to UFMIP)
2. Rate and Term: (Conventional to FHA) and FHA-FHA refinance withAppraisal will be limited to lesser of calculation of payoff, prepaids,closing cost etc OR 97.75% of value
3. Cash out refinance 95% or 85% . All "cash out" refinances exceeding85% LTV will require a second appraisal
4. UFMIP: Rate/Term and "Cash Out" refinance = 1.75%FHA to FHA (with or without appraisal) = 1.50%
Please email bob.accorto@acmgi.com and request a copy of the entire Mortgagee Letter 2008-40 and Matrix for all changes and guidance.
Tuesday, January 6, 2009
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