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Congress Passes H.R. 5981

Congress recently passed H.R. 5981, which gives FHA the authority to adjust its annual mortgage insurance premium, yielding approximately $300 million per month in value to the FHA Mutual Mortgage Insurance Fund at a time when its reserves are perilously low. FHA will lower its upfront premium simultaneously with an increase to the annual premium. This is intended to be effective on September 7, 2010.  FHA's upfront mortgage insurance premium will be adjusted down to 100 basis points on all amortization terms and the annual mortgage insurance premium will increase to 85-90 basis points on amortization terms greater than 15 years. For more information, please refer to the Special Edition Message from the Desk of the FHA Commissioner David H. Stevens here.

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