Yesterday, with Mortgagee Letter 11-10, FHA announces an increase to the Annual Mortgage Insurance Premium on standard FHA loan programs and a change that affects case numbers.

Here are the 7 things you need to know about these changes:

1.        These changes are effective April 18th, 2011.

2.        The Annual Insurance Premium will increase .25% for standard forward mortgages. The Upfront Mortgage Insurance remains at 1.00%.

3.        The Annual Premium is now 1.15% for LTVs GREATER than 95% on 30 year loans.

4.        The Annual Premium is now 1.10% for LTVs EQUAL to or LESS than 95% on 30 year loans.

5.        The Annual Premium is now .50% for LTVs GREATER than 90% on 15 year loans.

6.        The Annual Premium is now .25% for LTVs EQUAL to or LESS than 90% on 15 year loans.

7.        Case numbers with no activity for 6 months will automatically be canceled (includes case numbers pulled prior to April 18th, 2011).

To read Mortgagee Letter 11-10 in its entirety and to see examples, click here.