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Posted December 29th, 2017
Modification of Initial Mortgage Insurance Premium (IMIP) Formula for Home Equity Conversion Mortgage (HECM) Refinance Cases
The Federal Housing Administration (FHA) posted on its Home Equity Conversion Mortgages (HECM) for Lenders page on hud.gov, FHA Connection (FHAC) Release Notes, dated December 28, 2017, for the Initial Mortgage Insurance Premium (IMIP) formula for HECM refinance cases.
The formula was modified on November 14, 2017, and affects only HECM refinance cases with case numbers assigned on or after September 19, 2017. The formula change conforms with requirements set forth in the Federal Register Final Rule FR-5353-F-03, Federal Housing Administration: Strengthening the Home Equity Conversion Mortgage Program. The FHAC Release Notes outline the changes and processing instructions for lenders to calculate IMIP for HECM refinances.