DocMagic, Inc.'s Compliance Department has added the following FHA LIBOR Loan Programs under "Generic Plans" as the "Investor" pursuant to Mortgagee Letter 2007-13:

Code                            Description

FHA1L                           FHA 1YR LIBOR ARM 

FHA31L                         FHA 3/1 LIBOR ARM

FHA51L                         FHA 5/1 LIBOR ARM

FHA51L2                       FHA 5/1 LIBOR ARM

FHA71L                         FHA 7/1 LIBOR ARM

FHA101L                       FHA 10/1 LIBOR ARM

According to ML 2007-13, FHA will insure all forward 1-, 3-, 5-, 7-, 10-Year adjustable rate mortgage (ARM) loan products using the 1-Year London Interbank Offered Rate (LIBOR) as an acceptable index option. 

In addition, DocMagic has also added a 5/1 loan program (FHA51T2 - FHA 5/1 T-BILL ARM), which uses the 1-Month Constant Maturity Treasury (CMT) as an index and allows for a two percentage point annual interest rate adjustment after the initial fixed interest rate period and a six percentage point interest rate cap over the life of the loan.

Note that DocMagic has been offering other FHA loan programs under its Generic Plans using the CMT index.  Loan programs using the CMT index are as follows:

Code                            Description

FHA1T                           FHA 1YR T-BILL ARM 

FHA31T                         FHA 3/1 T-BILL ARM

FHA51T                         FHA 5/1 T-BILL ARM

FHA51T2                       FHA 5/1 T-BILL ARM

FHA71T                         FHA 7/1 T-BILL ARM

FHA101T                       FHA 10/1 T-BILL ARM

Please refer to Mortgagee Letters 2004-10 for more information about FHA's rule regarding the types of adjustable rate loans it will insure and 2005-14 for more information about FHA's policy regarding five-year hybrid adjustable rate mortgages.  If you have any questions, please contact DocMagic's Compliance Department.