In Mortgagee Letter 12-4 (ML 12-4) dated March 6, 2012, the Federal Housing Administration (FHA) announced a new premium structure for FHA-insured single-family forward mortgages. FHA will increase its annual mortgage insurance premium (Annual MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above $625,500. Upfront premiums (UFMIP) will also increase by 0.75 percent. The Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78) requires FHA to increase the Annual MIP by 0.10 percent. This change is effective for case numbers assigned on or after April 9, 2012. FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500. This change is effective for case numbers assigned on or after June 11, 2012. See the charts below:

Complete Memorandum