www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

August 26, 1996
 
MORTGAGEE LETTER 96-47
 
TO:  ALL APPROVED MORTGAGEES
 
SUBJECT:  Single Family Mortgage Insurance Premium (MIP) --
          Section 530 and Section 325 Risk-Based
 
     The purpose of this Mortgagee Letter is to announce
publication of a Final Rule which provides that MIP can be
accrued from the beginning of amortization on all Section 530 and
Section 325 risk-based loans, regardless of what time frame
exists between endorsement and the beginning of amortization.  In
addition, the Final Rule requires that monthly installments be
paid as due on or before the 10th of the month, whether or not
collected from the mortgagor.
 
     The Rule was published on July 19, 1996, and became
effective August 19, 1996.  A copy of the Rule is attached.
 
     Thank you for your continued support of the FHA Single
Family Mortgage Insurance Program.  Questions regarding this
Mortgagee Letter may be directed through the Internet to
sf_premiums@hud.gov
 
Sincerely yours,
 

Nicolas P. Retsinas
Assistant Secretary for Housing-
Federal Housing Commissioner
 
Attachment