This bulletin is regarding HUD’s Reduction in Annual Single-Family Mortgage Insurance Premium requirements issued on February 22, 2023. HUD’s Mortgagee Letter 2023-05 (ML), issued on February 22, 2023, informs lenders of the reduction in the FHA MIP Premium for the monthly payment obligation for FHA-insured first mortgages. As issued in the Letter, this guidance must be used for all mortgages endorsed on or after March 20, 2023, and lenders may begin using the announced policies immediately.
NJHMFA recognizes that this represents a significant change to the way MIP Premiums are calculated for FHA loans. Lenders are encouraged to use the new guidelines to help more New Jersey buyers qualify for our loans. Please note that NJHMFA has no overlays or restrictions regarding this new guideline and Participating Lenders are advised to follow the reduction in the FHA MIP Premium for the monthly payment.