Tuesday, August 26, 2008

FHA Announces Oct. 1 Premium Increases.

The recently enacted housing legislation imposed a 1 year moratorium on risk based FHA single family mortgage insurance premiums effective Oct 1, 2008.

In a notice alerting the industry to the upcoming change, FHA announced today that it would be increasing its upfront premium for many borrowers from to 1.75% on October 1st. (It had been 1.5% prior to the implementation of risk based pricing in July).

A WSJ story says that FHA market share is now 23%, and provides information about the increase HERE.

An advance copy of the HUD Federal Register Notice with much more detail is HERE.

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