FHA Moving Toward Risk Based Pricing in July.

In a move that seems likely to generate considerable controversy, HUD is announcing steps to implement, without a statutory change, risk based pricing for its single family FHA loan products. The change would be effective July 14th.

1. The HUD/ FHA press release is HERE.
2. A PDF of the Federal Register Notice, scheduled for publication in the coming week, is HERE.
3. A MS Word comparison of the various FHA refinancing plans, with the new premium structure, is HERE.
4. A MS Word copy of the HUD Mortgagee Letter (2008-13) is HERE.
   

Expect follow up blog posts on this subject as analysis and reactions develop.