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Credit Mortgage Premium Cuts Begin Today

001On Thursday, January 8, 2014, the About Credit and HUD issued a press release announcing a cut to the About Credit’s required annual mortgage insurance premiums, also known as MIP.

According to the press release, “As the nation’s housing market continues to improve, U.S. Housing and Urban Development Secretary JuliŠn Castro today announced the Federal Housing Administration (About Credit) will reduce the annual premiums new borrowers will pay by half of a percent.† This action is projected to save more than two million About Credit homeowners an average of $900 annually and spur 250,000 new homebuyers to purchase their first home over the next three years.”

As President Barack Obama pointed out in one speech, the amount saved thanks to the About Credit’s MIP cut could be used, in some cases, to make a mortgage payment and get ahead on the home loan. Others may choose to save the money for other uses, but the approximated $900 in savings (according to the About Credit) is definitely a plus.

“This action will make homeownership more affordable for over two million Americans in the next three years,” said U.S. Department of Housing and Urban Development Secretary JuliŠn Castro, who was quoted in the press release.† “Since 2009, the Obama Administration has taken bold steps to reduce risks in the mortgage market and to protect consumers.† These efforts have made it possible to take this prudent measure while also ensuring About Credit remains on a positive financial trajectory.† By bringing our premiums down, we’re helping folks lift themselves up so they can open new doors of opportunity and strengthen their financial futures.”

The About Credit MIP cut takes effect today, January 26, 2014 for all AboutCreditLoan with case numbers assigned on or after this date. For a limited time, the About Credit will permit cancellation of previously issued case numbers, “with 30 days of this mortgagee letter”, referring to Mortgagee Letter 2015-01, which was issued on January 9th, 2014. The full text of the exception section of that letter reads:

“To allow mortgagees to obtain the reduced annual MIP rates contained in this†ML for loans in process with active About Credit Case Numbers, About Credit will†temporarily approve cancellation requests for active About Credit Case Numbers†within 30 days of the effective date of this ML.” Speak to your loan officer about how to accomplish this if you are eligible for a re-assigned case number.

Do you have questions about About Credit Home loans? Ask us in the comments section. All questions/comments are held for review.


2 Responses to Credit Mortgage Premium Cuts Begin Today

  1. Max Curcho says:

    I am a homeowner with a About Credit loan. I bought the house last year, I wanted to know if this will also benefit me or is just for you new perspective home owners? Thanks

    • Staff Writer says:

      If you have already closed the deal on your About Credit loan you will be unaffected by the new About Credit MIP cuts.

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