Helpful Mortgage And Real Estate Advice

How to Submit FHA Case Number Cancellation Requests

By on January 14, 2015 in Market Updates, Mortgage Programs

Just a week ago, the President made an announcement in regards to reduced FHA Mortgage Insurance Premiums (MIP) along with temporarily allowing for lenders to cancel case numbers on loans issued on and after January 26, 2015.

FHA has reduced its Mortgage Insurance Premium (MIP) by as much as 0.50%, making it even more affordable for 2015 first-time home buyers and millennials. Speak with a professional FHA-Approved lender in your area today to see if you qualify.

The FHA Mortgage Insurance Premiums (MIP) is reduced by as much as 0.50 percent also affects loans with assigned case numbers dated the day of January 26, 2015 or after, as stated in the Mortgagee Letter 2015-01.

Lenders may start submitting these Case Number Cancellation Request starting tomorrow, January 15, 2015. The deadline for all cancellation requests must also be submitted before Midnight of Thursday, February 26, 2015. Such requests may be submitted in one of two options, individually or bulk. Any requests containing two or more case numbers can be submitted as a bulk request.

Here are the specific instructions for canceling case numbers:

  • Requests for cancellation of case numbers will be accepted starting January 15, 2015.
  • New case numbers cannot be ordered before January 26, 2015.
  • All cancellation of case numbers must be submitted no later than Midnight of February 26, 2015.

As noted on the FHA Case Processing Requirements web page, individual case number cancellations must comply with the standard instructions as described on the site and submitted by a mortgagee, not a borrower.

Along with the reduction of FHA’s Mortgage Insurance Premium (MIP) is the option to remove it completely. Speak with a professional today through Mortgage Home Base to get rid of your FHA MIP.

All bulk requests must consist no more than 1,000 case number cancellations and no less than two.

The email address that the requests should be submitted to is [email protected] and sent to the FHA Resource Center for processing with the subject line titled “MIP REDUCTION CANCELLATION – ML 20150-01. ” A required attachment of the following information for each email request for case number cancellation must contain the following:

  • The Lender’s name and ID of the company that is putting in the request.
  • Lender’s contact info along with Mortgagee’s name.
  • Contact person
  • Phone number
  • Fax number

This list of required information must be in Microsoft Excel Spreadsheet. The following format for the spreadsheet is as follows:

  1. Row 1 in spreadsheet must be used as the header and should contain the title “FHA Case Number” in Column A, whereas Column B must be titled under “Cancellation Code”.
  2. The very first FHA case number requested for cancellation must be inserted into Row 2 and the rest should follow subsequently in Column A.
  3. There is no specific requirement for how you should apply the case numbers to Column B and can be with or without the dashes or the zeros leading the numbers.
  4. The Cancellation Code should be abbreviated as “DM” referring to “Different MIP Structure” and should be entered into Column B alongside each case number.

Please also note that, for all case number cancellation bulk requests, the reason for canceling should be no other than a Different MIP Structure as mentioned in the Mortgagee Letter 2015 – 01.

Also, for the loans that have already obtained an appraisal, the mortgagee is required to certify the appraisal via the FHA Connection Appraisal Logging Screen by simply checking the “Certify Effective Date” box to help indicate that the Case Number has been cancelled.

Tags: , ,

About the Author

About the Author: Jessica Lucas is the managing editor for Mortgage Home Base, a top real estate finance blog dedicated to helping borrowers and home buyers understand the home loan process. Follow Jessica on Google +, and share your comments here. .
Have A Question?

© MortgageHomeBase