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 Multifamily MIP Rate Changes
Realignment of Multifamily Mortgage Insurance Premiums to Further Rental Housing Development and Financing
Today, the Federal Housing Administration’s (FHA) Office of Multifamily Housing Programs published a Federal Register notice that proposes a sweeping realignment of Multifamily Mortgage Insurance Premiums (MIPs) across all FHA Multifamily programs. This proposal builds on HUD’s actions to implement President Trump’s Presidential Action on Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis, and his Executive Order on Unleashing American Energy.
The proposals in the notice will help expand cost saving benefits to all property types, lower financing costs, stimulate rental housing development, and reduce burdensome regulations. Specifically, the notice proposes to:
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Realign all Multifamily Mortgage Insurance Premiums (MIPs) to 25 basis points for all Multifamily programs. Under this proposal, all FHA Multifamily loans would benefit from the exact same low MIP rate.
- Concurrently eliminate the ineffective and cost-prohibitive Green and Energy Efficient MIP (Green MIP) category established in 2016. This category becomes economically obsolete with the realignment of Multifamily MIPs.
- Eliminate the requirements to evidence the initial green building achievement and the annual reporting of energy performance for all loans closed under a Green MIP rate.
HUD is soliciting comments on the proposals contained in today’s notice. The deadline for public comment is 30 days from the date of publication in the Federal Register.
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