FHA Secure originally was focused on delinquent conventional loan borrowers who were refinancing into a FHA loan. The number of these loans that have been completed is tiny. This program also carried a higher mortgage insurance premium, reflecting the higher risk of the program.
Somewhere along the line the term FHA Secure was expanded by HUD to include any conventional loan being refinancing into a FHA loan. That program has gone gangbusters.
(Data on each program for recent months at the state level is available from my US Current FHA Refinancing Report in the right pane of the blog; note that FHA Secure data only started to become available in April 2008).
I Think that Only the Tiny [Delinquent Borrower ] Part of FHA Secure is Scheduled to Go Away Dec. 31 st.
After reading several documents my conclusion is that the only program set to expire on December 31st is the original FHA Secure program for delinquent borrowers and NOT the FHA Secure program for conventional borrowers who want to refinance into a FHA loan.
Despite the small size of FHA Secure program for delinquent borrowers I expect that consumer and lending groups will seek an extension.
HUD Needs to Clarify
Hopefully, HUD and FHA will get around to clarifying this with some kind of communication like a mortgagee letter. (Like some additional details I could be missing).
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