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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.

Revised FHA Down Payment and Maximum Mortgage Requirements – Mortgagee Letter 2008-23

Pursuant to the requirements of the Housing and Economic Recovery Act of 2008 (HERA) that become law on July 30, 2008, FHA is revising its down payment and maximum mortgage requirements effective January 1, 2009, for all new FHA case number assignments on or after that date. A copy of Mortgagee Letter 2008-23 (ML 2008-23) is attached to this memorandum and provides some guidance regarding the revised down payment and maximum mortgage requirements for single family mortgages insured by FHA.

New FHA Mortgage Insurance Premiums – Mortgagee Letter 2008-22

Effective October 1, 2008, for new FHA case number assignments on or after that date, FHA will no longer base its mortgage insurance premiums on a combination of credit bureau score and loan-to-value ratio (Mortgagee Letter 2008-16). The new premiums (upfront and annual) to be implemented for all loans for which a case number is assigned on or after October 1, 2008, are described in Mortgagee Letter 2008-22. A copy of Mortgagee Letter 2008-22 (ML 2008-22) is attached to this memorandum.

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