Math Blog Important HUD FHA MIP Revisions That Affect ZMath®

HUD, in Mortgagee Letter 2013-04, has revised the FHA insurance program. The revisions are numerous and you should get the Mortgagee Letter and make sure that you adjust your programs accordingly. These changes must be in place for any loan having a case number assigned on or after June 3, 2013. One change involves us revising the ZMath family of products. This change is the elimination of the LTV cutoff for MIP. What HUD has done is set the term of insurance based on the initial loan-to-value ratio. For any loan with an initial loan-to-value ratio greater than 90%, MIP remains in force for the entire loan term. For loans with an LTV of 90% or less, the MIP remains in force for a term of eleven years.Our engines have been adjusted to calculate this properly and are available as an update. If you did not receive your update, please contact us for immediate delivery. Our eZMath and ZMath products will be receiving the update in the near future and will be rolled out well in advance of the date needed to comply.If you have any questions about this or any other issue related to our products, please feel free to contact us!