FHA issued Mortgagee Letter 2017-12, setting forth revised initial and annual mortgage insurance premiums (MIP) and principal limit factors for home equity conversion mortgages (HECMs). Currently, the initial MIP for HECMs is either .5% or 2.5% of the maximum claim amount, depending on the disbursements made to or on behalf of the borrower at closing or during the first 12-month disbursement period. The current annual MIP is 1.25% of the outstanding mortgage balance. In accordance with the Mortgagee Letter, the initial MIP is changed to 2% of the maximum claim amount for all mortgage loans and the annual MIP is changed to .5% of the outstanding mortgage balance. The Mortgagee Letter also announces that the Principal Limit Factor Tables for HECMs have been updated. The Mortgagee Letter becomes effective October 2, 2017.
FHA
FHA Revises and Streamlines Policy Established in Mortgagee Letters 2024-24 and 2025-12
FHA issued Mortgagee Letter (ML) 2025-14 revising and streamlining policy established in ML 2024-24 (Modernization of Engagement with Borrowers in Default) and providing clarifications to
June 4, 2025
