HUD has issued guidance on requirements for FHA mortgage insurance premiums (MIPs), clarifying that annual premiums won't be charged when forward mortgages are originated with a term of 15 years or less and a loan-to-value (LTV) ratio of 78 percent or less. In Mortgagee Letter 2011-35, issued on September 21, HUD noted that existing guidance provides for the cancellation of the annual MIP when the LTV ratio on a 15-year mortgage is reduced to 78 percent, but doesn't address loans originated at that level.
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