III.A.1.i. Mortgage Insurance Premium Remittance (03/14/16)
- Kacey Olson
© HUD Single Family Housing Policy Handbook 4000.1
Included in this section are:
i. Definition
ii. Standard
iii. Mortgage Insurance Premium Reports
i. Definition
Annual or Periodic MIPs are those MIPs that are remitted to HUD each month.
ii. Standard
The Mortgagee must remit one-twelfth of the annual MIPs each month to HUD, regardless of whether it was received from the Borrower. The Mortgagee can access the Advance Premium Notice and case-level billing information in FHAC to determine monthly collections of MIPs after the first premium year.
The Mortgagee must remit MIPs in accordance with the original amortization schedule. MIPs accrue from the beginning of amortization, without regard to what timeframe exists between endorsement and the beginning of amortization and without regard to any Partial Prepayments, Delinquent payments, agreements to postpone payments, or agreements to recast the Mortgage.
For refinances, the Mortgagee must remit MIPs on the Mortgage being paid off through the month in which that Mortgage is paid in full.
iii. Mortgage Insurance Premium Reports
(A)Â Use of FHAC The Mortgagee can access the Advance Premium Notice and case-level billing information in FHAC to determine monthly collections of MIPs after endorsement.
(B) Reports after Transfer or Sale If, 90 Days after acquisition, a transferred or sold Mortgage has not appeared on HUD’s monthly MIP report to the Transferee Servicing Mortgagee or Purchasing Mortgagee, that Mortgagee must ensure that the Servicer/Holder Transfer function is completed in FHAC.