Saturday, June 12, 2010

FHA Reform Bill Passes House

by Bill McBride on 6/12/2010 10:11:00 PM

Just an update on H.R. 5072: FHA Reform Act of 2010

The bill passed in the house 406-4. This bill has several provisions, but a key for the housing market is the increase in the maximum annual premium payments for mortgage insurance.

The current maximum is an annual premium of 0.50% of the outstanding principal balance for loans with the original principal obligation under 95% LTV, and 0.55% for loans with the original principal obligation over 95% LTV.

This legislation will increase the maximums to 1.50% and 1.55% respectively.

The proposed effective date is September 30, 2010. There is no senate version yet.