HUD Annual Mortgage Insurance Premiums On the Rise

Annual Mortgage Insurance Premiums Going Up

HUD has announced that in an effort to “strengthen the Mutual Mortgage Insurance Fund”, as of April 1, 2013, the Annual Mortgage Insurance Premiums will increase. Current Standard (3.5% down) MIP = 125 bps. New = 135 bps.

Also, under current FHA allowances, anyone who puts 22%+ down on a 15 year term is exempt from paying annual MIP. This exemption will now be removed, effective April 1, 2013. This new MIP amount is 45 bps.

Additionally, effective June 3, 2013, the period of time that the annual MIP will be assessed will increase dramatically: Previously, all loan terms were required to pay annual MI for a minimum 5 years or was cancelled upon hitting 78% LTV. Effective June 3, all FHA loan terms with less than 10% down payment (>90% LTV) are required to pay the annual MIP throughout the life of the loan or the first 30 years, whichever comes first. All terms with more than 10% down (<90% LTV) now must pay annual MI for the first 11 years of the term or the end of the term, whichever comes first.

Finally, HUD has also notified all lenders and potentially impacted institutions (as of 3/11/2013) about the effects of the sequester. Although no jobs have been furloughed as of this moment (due to the 30 day notice requirement to workers), HUD has stated that, “furloughs and reductions in systems maintenance and other areas may result in delays in processing mortgage insurance applications, origination, and servicing inquiries”.

It’s uncertain exactly how long the delays will be and when they’ll take effect. So, using your best judgment, be cautious when establishing closing dates on your FHA or HUD contracts and check with your lender.

The Two Seasons in Nebraska

If you've lived around here long enough, you realize there are two seasons in Nebraska: winter and road construction. And around here, road construction is just around the corner. We'll be seeing a lot of orange barrels and traffic tie-ups real soon, and it could last into 2014. Here are some of the projects slated to go on in Bellevue, Papillion, La Vista and Sarpy County.

Bellevue

• Turn lanes will be installed from Cornhusker Road onto both directions of Kennedy Freeway.
• Sarpy Avenue is getting new asphalt overlays from Chandler Street to Harrison Street.
• Childs Road is also getting new asphalt overlays from Fort Crook Road to Bellevue Boulevard North.
• New asphalt overlays are coming for Reed Drive and 32nd Avenue west of Calhoun Street.
• Harrison Street from 48th Street to Sarpy Avenue is getting new asphalt.
• Capehart Road from 25th Street to the Kennedy Freeway is getting new asphalt.
• 21st Street from Cornhusker Road to Pratt Avenue is also getting new asphalt.
• 36th Street from Capehart Road to Bline Avenue is also getting new asphalt.
• Olde Towne Bellevue is getting some sidewalks, curb repair and curb ramps.
• The Capehart Road Bridge is getting replaced.
• Bike lanes are going to be installed and painted along Fort Crook Road.

Whatever will we do with all this new asphalt? Also, the proposal for expanding 36th Street to four lanes from Highway 370 to Sheridan Road is due to be completed.

Papillion

• Many street repairs and ADA sidewalk ramp improvements will go in around the city.
• Reconstruction of Washington Street from Cedardale Road to Capehart Road.
• Midlands Creek Trail from Highway 370 to First Street.
• A trail project to connect Savanna Shores Trail to Walnut Creek Recreation Area.
• Traffic calming measures (?) along 6th Street from 72nd Street to 84th Street.

La Vista

• Short term improvements to the intersection of 132nd Street and Giles Road.
• Railroad crossing quiet zone improvements at 130th Street and Giles Road, 126th Street south of Giles Road and 132nd Street south of Centech Road.
• Reconstruction of the Lillian Avenue and James Avenue intersection.
• Replacing damaged storm sewer inlet tops on 72nd Street, 96th Street, Harrison Street and Giles Road.
• A new traffic signal at the intersection of 120th Street and Giles Road.
• New storm inlets on both sides of Giles Road at 103rd Street and Giles Road.
• Traffic signal coordination on Giles Road from Interstate 80 to 108th Street.
• Replace concrete panels along Lillian Avenue from James Avenue to Terry Drive.
• Replace concrete panels along Park View Boulevard from 87th Street to Thornapple Lane, along 88th and 89th Streets from Park View Boulevard to Granville Parkway.
• A new asphalt overlay on Giles Road from Harrison Street to Interstate 80.

Sarpy County

• 84th Street will be constructed from Cedardale Road to Capehart Road.
• Survey, design and bridge construction work at 234th Street and Capehart Road and 234th Street and Fairview Road.
• Harrison Street from 225th Street to 204th Street will be asphalted.
• 225th Street from Harrison Street to Centennial Road will be asphalted.
• Centennial Road from 225th Street to 222nd Street will be asphalted.
• 222nd Street from Centennial Road to Lincoln Road will be asphalted.
• Repair and surfacing work will be done on the Fort Crook Road bridge over Papio Creek and railroad.
• Capehart Road from 48th Street to 81st Street will be constructed.
• 114th Street from Highway 370 to half a mile south of Giles Road will be constructed.

Like I said, a lot of work going on around town. Keep the speed down and stay calm through the delays. It'll be worth it.