On April 10, 2012, HUD released a notice in the Federal Register to announce proposed changes to the mortgage insurance premiums (MIPs) for certain Federal Housing Administration (FHA) Multifamily Housing, Health Care Facilities, and Hospital Mortgage Insurance programs for commitments to be issued or reissued in FY 2013.
In a new Federal Register notice No. FR”“5634″“N”“02 dated August 15, 2012, HUD announced that the proposed MIP increases will be implemented in FY 2012. HUD will increase MIPs for market-rate New Construction/Substantial Rehabilitation loans under Sections 207, 213, 220, 221(d)(4), 231, 232, and 242 by 20 basis points, Section 223(a)(7) loans will be increased by 5 basis points and there will be a 15 basis point increase for all other market-rate multifamily housing, health care facility, and hospital loans. The increases will not apply to Low Income Housing Tax Credit Loans, other affordable housing loans for HUD-assisted properties, or loans insured under FHA’s Risk Sharing programs.
HUD says that the revised MIPs will be effective for any firm commitments issued or reissued on or after October 1, 2012, with the exception of transactions in which firm commitment applications were submitted prior to June 1, 2012. The notice also addresses the public comments received in response to the April 2012 notice.
Click here to read Notice No. FR”“5634″“N”“02.
