On August 12, 2010, the President signed into law Public Law 111-229, which provides the Secretary of Housing and Urban Development (HUD) with additional flexibility regarding the amount of the premiums charged for Federal Housing Administration (FHA) single family housing mortgage insurance programs. Specifically, the new law permits HUD to increase the amount of the annual mortgage insurance premium that HUD is authorized to charge. ML 2010-28 was revised to correct the HECM premium information and reposted. The initial ML indicated the HECM upfront premium as 2 BPS and the annual premium as 1.25 BPS. The ML was corrected to reflect the upfront premium as 200 BPS and the annual premium as 125 BPS. To read this mortgagee letter and any attachments in their entirety, please click here.
