Did you Lock in an FHA loan with lower MI?  FHA LOAN in the hopper? You may get STUCK Inauguration and new Administration May Stall YOUR FHA loan closing BEWARE! Oh no ! This could be unwound before it starts. If the President retracts the MI reduction right after the 20th we will have stuck borrowers. As we know, President elect Trump may have different ideas on how HUD should work and is creating much uncertainty. If you locked, re-disclosure with higher numbers may be impossible. Is this a legal change of circumstance? Lender would have to pay the increase for life of loan. The current laws, lovely Dodd Frank, require Loan Estimate to be exact and Closing Disclosure can't go up, only down. If Trump cancels the reduction in MI, he may hold your transaction hostage until Mnuchin figures out the granular nitty gritty grass. Stay tuned borrowers, the corresponding articles now surrounding this topic. It makes having tough conversations on the 26th easier should this occur. My advice to mortgage lenders is do not disclose the lower MI, don't write this product until we find out what the new boss will do. |
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