I closed my FHA loan on Feb 9, 2009.  I've been trolling MND for a good couple of years, watching and waiting.  I finally pulled the trigger and locked in at a 3.5% rate, with excellent closing costs.  After the loan got back from the underwriters the numbers did not nearly add up (for me). MIP was completely off based on the scenario I had plotted out.  Turns out my loan was not endorsed until June 26, 2009.  This effectively makes my payments only slightly lower, but all around is a poor deal due to the UFMIP and annual MIP, and i wouldn't dream of adding 8.5k to my principal for a savings of 125 bps on the rate. 

My understanding was that the originator had 50 days to get the loan to FHA for endorsement or it is considered late. I called FHA, and was given a friendly but unhelpful loop back to my Loan Officer, as they did not have information on why the endorsement was not submitted timely, and it was "unclear" what this meant for me.  My LO is going to have his underwriter call FHA and try to get more info, but I wanted to check with this esteemed community and see if anyone had encountered something like this before, and what, if any options I might have.

John
Bossier City, LA

Good Morning John,

Hope all is well.  Unfortunately, every bank will be required to use the endorsement date.  Typically, the endorsement could take a few weeks and more.  You can always wait to see if the government will expand on this program.  I would suggest to take a slightly higher rate to eliminate the UFMIP since it is significant - with a higher rate, your lender can pay the UFMIP for you.  Good luck!

Jamal

Can someone please tell me what the normal time frame is to close on a Refi these days? I'm going on three months with this broker and keeps giving me the run around as to why my loan has not closed.

I am looking for some useful info regarding investing money in real estate business that's i am browsing in that forum but like your post as well.

Hi John,

All lenders are requred to use FHA's endorsement date when determining eligibility for HUD's reduced MIP FHA refinance program. Since your loan (for whatever reason) wasn't endorsed before 5/31/2009, if you do an FHA streamline your monthly MIP premium will more than double, AND you'll get hit with a 1.75% upfront MIP cost. Most FHA loans written by early April, 2009 were endorsed before 5/31, but there is no set time between closing and endorsement dates. It's very possible that when your loan closed there was an item that did not meet FHA's standards, and your lender had to take additional steps prior to getting it endorsed. It's also possible they dropped the ball for whatever reason in submitting it to FHA for endorsement. You can wait to see if the current program's eligibility is expanded (which I probably would do), OR absorb the additional HUD costs and refinance now. If you do refi now, though, be aware you won't have the option to do the low cost streamline in the future if/when the program is expanded.

Could or should have cancelled that case ID but what most folks do not know is that the lender acutally has 60 Days " Normally" to get the file to that status to be fully endorsed..

The sham is we just didn't know they (FEDS) would or were coming out with something that was so very date sensitive to dis count your loan. we often wonder it it as by design.

Good luck.. ald depending what your current rate and your Loan To Value is it may be worth going conforming if you are at or under 80% LTV

Mark McCormick

mmccormick@affiliatedbank.com

817-500-5108

John,

your situation is really not that different from borrower's who aren't eligible for the Fannie/Freddie HARP program. The loans had to be delivered to fannie/freddie prior to 1 June 2009. It's in the best interest of the lender to deliver a mortgage to the GSE or any investor as soon as possible. There may be financial consequeces to the lender but the lender has no obligation to a borrower to sell the loan to a servicer or deliver to a GSE.  Obtaining FHA endorsement and subsequent mortgage insurance is to protect the lender from default when funding and closing on a high ltv loan.

As fars as options if your property wont appraise where you can obtain a conventional loan at 95% or less LTV you may not have options that make a lot of financial sense to you but you'll need to work with a mortgage professional who can show you options that are limited to refinancing a FHA mortgage endorsed after 1 June 2009. 

Sorry I just realized this was a dated post.