FHA Does Away with 1% Loan Origination Fee Limit as Part of RESPA Reforms.

FHA has issued a new mortgagee letter HERE, explaining the changes it made to FHA fees and disclosures to comply with RESPA reforms going into effect January 1st.

As a result of regulatory changes to 24 CR § 203.27, FHA no longer limits the origination fee to 1 percent of the mortgage amount for its standard mortgage insurance programs. However, both Home Equity Conversion Mortgage (HECM) and Section 203(k) Rehabilitation Mortgage Insurance Programs retain their statutory origination fee caps

Originally created and posted on the Oregon Housing Blog.