HUD Announces Changes of the Mortgage Insurance Premiums

Tuesday, August 30, 2005 - 7:15AM

The U.S. Department of Housing and Urban Development (HUD) today announced changes of the mortgage insurance premiums (MIP) for several Federal Housing Administration (FHA) multifamily mortgage insurance programs whose commitments will be issued or reissued in fiscal year (FY) 2006. For all sections of the National Housing Act where the mortgagor equity is produced from the proceeds of the sale of low-income housing tax credits (LIHTCs), the MIP is reduced to 45 basis points. The also notice includes MIPs for project mortgages without LIHTCs. HUD will accept comments on today’s announcement through September 29, 2005; the effective date for these changes is proposed to be October 1, 2005. Click here for the notice, including a table of FY 2006 MIP rates and instructions for submitting comments.

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