There’s a new FHA Streamline Refinance program coming on June 11, 2012 and lots of people are interested in it! It has a new “tier” for the FHA PMI rates – that is much lower than the current rates! Of course, FHA doesn’t actually make loans, they just insure the Lender against default. Because most of the people we know call this kind of Insurance PMI – we refer to it that way.
In the Announcement for the New Streamline FHA Refinance Program, it states that the only people who qualify are people with “Mortgages that were ENDORSED By FHA Prior to May 31, 2009.”
What does that mean?
This is NOT your closing date. It’s the day that FHA actually reviewed the case, and approved it “Endorsed you” for Insurance Coverage.
The Process for Endorsement from FHA really depends on who you received your loan through. If it was a large bank, it’s possible that they did an LI Endorsement, instead of sending information directly to FHA for review (which is what most lenders do). Either way, the documents are sent to FHA within 60 days of closing for them to endorse.
Bottom Line is this: you could have closed on your mortgage in March of 2009, and your loan might not have been endorsed by FHA on May 31, 2009!
How Can You Find Out When Your Loan Was Endorsed By FHA??? We talked to FHA in Washington today – and they confirmed that you can call 800-697-6967, 8:30 a.m. to 8:30 p.m. Eastern Standard Time, Monday through Friday. You can also call the FHA Resource Center at 800-225-5342 Monday-Friday, 8 a.m. to 8 p.m. ET.
When you call, you need to have your FHA Case Number handy, they can’t help you without that. The FHA Case Number is on your Closing Docs. In NC, the case number is generally a 10 digit number, but could be up to 13 digits long. It’s normally found on your HUD-1 Settlement statement, on the top right corner of your note, and on the first page top section of your Appraisal. You likely also signed a HUD 92900-A which will have the case number on it.
What if your loan was endorsed AFTER May 31, 2009 – then what? There are other options!
In addition, if you want to see if you qualify, we can also look up your endorsement date via FHA Connect. Please call Steve Thorne, 919 649 5058, we’ll be glad to help you with a Streamline FHA Mortgage Loan in North Carolina!
Things to Remember about Qualifying for the FHA Streamline Refinance Program in 2013
- You must be current on your existing FHA Mortgage (USDA, VA and Conventional loans do not qualify)
- Your current FHA mortgage must have been endorsed prior to May 31, 2009.
- Additionally, FHA says that to qualify:
- Employment verification is not required with an FHA Streamline Refinance
- Income verification is not required with an FHA Streamline Refinance
- Credit score verification is not required with an FHA Streamline Refinance* (See notes below regarding AUS findings)
- A new appraisal is not required with an FHA Streamline Refinance
FHA changed it’s guidelines so that VERY little is required to qualify, however, in North Carolina, we have our own State mandated standards, so again – many NC Banks can not offer this program the way FHA intended for it to work – WE DO!
*Regarding No Credit Score. We use DU Automated Underwriting Systems. You will need an AUS approval. Otherwise, we need at least a 600 credit score with a Total Scorecard Approval (there are some additional guidelines that also apply).
Call Steve Thorne today to get today’s best Interest Rate Quote, and to find out what you need to do to get started on a FHA Refinance! 919 649 5058
Seriously!?!? I just found out that the loan I closed on April 20th, 2009 was not endorsed until June 4th. Am I seriously not eligible because of this? That is the craziest thing that I have ever seen.
Mike – unfortunately, the way the “guideline” is written says that the loan had to be ENDORSED by the end of May. We’d be glad to talk to you about a “regular” Streamline – but the savings will not be as low because of the FHA “PMI” Insurance
Do I have any other options, a conventional refi maybe?
Mike – You likely have other options. Call us at your convenience, and we’ll be glad to help! 919 649 5057
We just refinanced our “godfathered” FHA in March 2012! We dropped our interest rate enough to make up for the rising PMI fees, but NOW! If only we had waited. If our original FHA was endorsed in 2008, does it not count as a grandfathered FHA anymore since we refinanced this year? So sad. I’m sure I know the answer already.
Yes – I’m sure you know the answer. Since you were able to take advantage of the FHA Refinance Program (gladly before the rates went up!) you no longer qualify for the new program in June.
My original closing date was November of 2008. I did a refinance in December of 2009. Will my endorsement date be equal to the original loan date or does that get updated with the refinance in December 2009? If so, is there anything I can do to take advantage of lower rates and lowering my MIP?
Greg! Hey it’s going to be from the last date (December 2009). With rates dropping last week with the Jobs Numbers (and Europe probably having Greece drop out of the EU), even with the higher “PMI” (MIP) rates, you’ll likely see a savings! If you’re in NC – call us! 919 649 5058
My situation is similar to Mike’s. My FHA loan closed April 27th, 2009, but has an endorsement date of June 8th 2009. I asked FHA why this took so long to endorse and they referred me back to my lender. My lender confirmed that they submitted my loan portfolio to Ginnie Mae–(the investor) on May 19th, 2009 via courrier. That means they would have received it by May 21st or May 22nd 2009. I am trying to call Ginnie Mae to see if they can change the endorsement date as they received my loan well before the deadline of May 31st 2009. Do you think they would do that or do I have any other recourse here? Maybe with the lender since they waited 3 weeks after my loan closed to submit it to get endorsed? This sreamline would save me thousands and I should not be penalized by late submissions. My loan officer also told me that he saw another loan that closed April 3rd and was endorsed April 25th yet mine took twice as long to get endorsed as that loan did. Any information you could give me would be greatly appreciated.
I know this is frustrating, but I think you have somewhere between “very slim” and “no chance” of Ginnie or FHA changing an endorsement date. Ginnie Mae is a GSE, just like Fannie and Freddie. I know this is frustrating, however, there’s still a HUGE chance that with rates being this low, you will still benefit from refinancing. You need to call a loan officer. We are in North Carolina
Thank-you for this informative post. Unfortunately, my loan closed in May but wasn’t endorsed until Oct. Sucks for me, but I do appreciate this explanation.
Rick – watch interest rates. Bad news normally means good news for rates. The first Friday of every month the “Unemployment” number comes out. I would watch them especially around that date. Good luck!
Hello Eleanor,
I have a Direct – Endorsement Approval for a HUD/FHA – Insured Mortgage that was approved 4/30/09 through 5/31/09 with no additional conditions. Does that mean that my loan qualifies?
Thank You,
Lisa
Lisa – if you will call us at 919 649 5058 with that approval, we can take the case number, and look it up for you!
Endorsed before may 2009? What does that have to do with anything??? Good idea with the stupidest rule for being eligible. Millions will miss out on the potential savings!
Hi Eleanor: I qualify for the streamline refi… Two things, Is there any benefit of refinancing with the current lender that has my mortgage. He has offerred me a “best rate” which drops my interest rate from 4.875 to 3.75 and my total mortgage from $1554 per month PI and taxes and insurance to $1304 PI and taxes and insurance. He has given me a lot of “lender credits”, which are of some benefit in that I will not have to pay any out of pocket closing cost. Is this the lowest rate available and can the rate be influenced by my credit score, which is 820? Although income verification is not necessary, I have verifiable income of over 10,000 per month. I live in Massachusetts.
The rate is not influenced by your credit score. If you want to pay MORE in out of pocket expenses, then you might be able to get a better rate. I strongly suggest (however) that you lock into a rate no later than this Friday when the Jobs numbers come out!
Hi Eleanor. I think I saw in another post of yours that you do loans in Georgia, is that correct? My current loan is with Chase, 30yr fixed, my rate is 5.75%, and due to the market I am underwater. I have tried to refi or get a modification from Chase with no luck. I feel like I am hitting a brick wall with them. I have had no late payments on my loan since 2007 and its an FHA loan. Will I qualify for a streamline refinance? If so, what are possible rates I could get? Any assistance would be greatly appreciated. I would love to take advantage of saving some money by making a lower payment and possibly cutting the term down as well, if possible.
Tamieka – you should qualify. You can call us at 919 649 5058 – Thanks!
I closed an FHA loan in Jan 2009, but just found out today it was not endorsed by FHA until Late JULY 2009! I thought I was in line for the FHA Streamline refi but now it seems like I will not get it. Has anyone ever heard of this (a 6 month lag) between close of loan and FHA endorsement? Is there any recourse that I can take? Is this negligence on the lender of FHA (or both)
EP
Yes – it’s very possible that it took several months for it to be endorsed. There is a bill in Congress that might help with this, but it would not come out until after the elections.
I closed in the middle of nov 2008 and was not endorsed until after the deadline in june 2009! This industry is still run by criminals and backed by politicians.
I’m sorry you had that delay. You will should consult with a lender to see if it makes sense to refinance. If we go over the Fiscal Cliff… rates are likely to go up.
Thank you so much for all of this great information and advice Eleanor! For us non-industry people, the terms, processes and technicalities get confusing. Your site is by far the best resource I have found on this topic. I’ve made peace with the fact that I missed the endorsement cut-off date by 4 months. My question is will the FHA readdress this cut-off date in the future? Will they ever roll the required date? For example: May 31, 2009 (established in 2012) becomes May 31, 2010 (established in 2013).
I’ve heard that this might happen – but in my opinion it’s not likely. FHA Announced recently that it’s loosing money. The last 5 times that they made the announcement – the Consumer lost. If they raise PMI rates on FHA Loans any higher – they will no longer be affordable. If they allow MORE people to refinance at very reduced PMI rates – the program continues to lose money. There’s not a great answer, unfortunately.
Hi there, I also like ERP says, closed in Jan. 2009 and got word that endorsement happened until 07/2009! You mentioned a bill helping with this in your answer to ERP… any update to this, since elections already happened?
It could be part of the Housing Initative HARP program that Obama mentioned in his State of the Union Address. No updates yet. Thanks!
I need your expert opinion please! I’ve already pulled the plug on dealing with Quicken Loans for my FHA Streamline Refinance. They tried to charge me $1900 out of pocket with 4% fixed for 30 yrs. on my $196365 balance.(I refinanced 7/1/09 so I’ve got 44 pmts. in). Now I’m working with a different mortgage company offering me 3.625% with about $1500 or so in out of pocket costs with APR of 4.503 which seems rather high. Shouldn’t APR be no more than .75 higher than interest rate? Does this sound reasonable? I just don’t want to be ripped off. I’m so sick of it! P&I would be $911.20 for total payment of $1628.16 (after escrow/PMI added of course). I currently pay $1821.44/mo. @ 5.25% and my PMI is $89/mo. I plan on staying in my home for at least another 7 years for sure. Thanks so much in advance for your simple thumbs up or thumbs down on this refinance move!! 🙂
By the way, my husband and I both have credit scores of 750. 🙂
Oh My Goodness! I think that reducing your P&I by 50% sounds like a GREAT idea! It looks to me like this is a good deal… we have seen rates go up in the last week or so – then they dipped… so as long as you are near the 3.5 to 3.75% rate you are doing GREAT! Congratulations!!!
We closed on our home in November 2008, We refinanced in January 2013 with a streamline without knowing about the possible PMI (MIP) rate reduction benefits and have since started investigating as to why we didn’t qualify. We discovered that our mortgage was not endorsed by FHA until September 2009! That’s 10 months later, putting us passed the May 31, 2009 deadline to qualify for the reduced rates! We were accepted for a Direct Endorsement with FHA prior to closing (which should have expedited the endorsement process). I have contacted FHA and got the run-around with them, simply telling me to contact my lender. My lender was equally unhelpful and even gave me contradictory information. It seems no one is capable of providing answers or explanations. According to FHA, my lender had 60 days to submit the loan to FHA for endorsement or they would incur penalties and be considered a “late request endorsement.” I was also told by FHA that, if my lender took longer than 60 days, then my lender would also own my loan, not FHA. My lender told me that they had 18 months to submit my loan for endorsement. Who is correct? Obviously, my lender has a deadline by which they must submit a loan for endorsement (whether 60 days or 18 months). Does FHA also have a deadline to meet by which they must approve or deny a loan for endorsement? I can’t imagine a Federal agency being able to take as long as they want; no deadline that they must meet.
Katie – I’m so sorry you’ve had this problem. Since you’ve already refinanced, there’s little that can be done about getting a reduced FHA PMI rate. We did have as reader who contacted her Congressmen, and requested that they investigate. (here’s their letter) I suggest that you consider contacting Congress. There is some hope that if Mel Watt ends up as the new head of the FHFA (he’s been nominated but not through the confirmation process) he’ll push that Endorsement date of June 1 2009 date back to May of 2010. Unfortunately, Mortgage rates have gone up in the last few weeks.
In regards to how long your lender had to submit to HUD – that’s done, as I understand it, on a contract basis. Meaning that Wells Fargo, being so large has a different set of guidelines for endorsement than Collins Bank. I”m only using them as examples, but I’m hoping you understand what I’m saying. It’s impossible for me to know the exact time frames for the Lender.
Again, my best suggestion is that you contact your Congressional Representative.