Jan. 26: Big Day – FHA MI Drops; CU Appraisal Rule In Effect
January 26th, 2015 is a big day in the mortgage industry.
1. FHA “monthly” MI is lower (down to 0.85% for most loans) for all case numbers ordered from today on. Per HUD, expect delays in getting case numbers.
2. Fannie’s much feared new Collateral Underwriting (CU) Rule is now in effect. This is a “tool” that Fannie only encourages lenders to use. The tool assesses a “risk score” to the data used in an appraisal. Concerns about the implementation of this rule appear to have been overblown. Its effect remains to be seen.
3. Also, as of this year, FHA lenders can no longer collect interest through the end of the month, no matter what, when an FHA loan is paid off. FHA lenders can now only collect interest through the pay-off date.
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