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Why the heck did FHA choose May 31, 2009 Cut Off Date for Streamlined Refi's?

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Mortgage Professional America | 12 Mar 2012, 08:18 AM Agree 0
Well, last month there were no FHA updates to report—but I just knew that the “silence” meant that they are dumping a bunch of changes on you—and what a dump It’s going to be.
  • John Pedigo | | 08 May 2012, 02:09 AM Agree 0
    This makes absolutely no sense for me. My mortgage closed on April 28, '09, but wasn't endorsed until June 23rd. Even under the new streamline, I wouldn't be eligible for ANY UFMIP refund according to FHA Connect - .00000 (yes, 5 zeroes) for either May or June. :-/
  • KarenDeis | | 08 May 2012, 01:34 PM Agree 0
    Yeah, so sorry to hear that you got stuck between the closing dates and the endoresement dates. It usually means one of two things: that your original lender was not on the ball when it came to submitting the final file to FHA OR that FHA staff let it set on their desk for months.
  • AsaD | | 03 Jun 2012, 04:53 PM Agree 0
    Can that date be revised? We closed May 14th and our case was endorsed August 27th - 3.5 months later!!! What the... It seems crazy that there's no work-around for cases like ours. We had absolutely nothing to do with the work that happened after our closing.
  • Jeremiah | | 09 Jun 2012, 08:51 AM Agree 0
    I hope they make a work around because i closed in the middle of may, but it wasnt endorsed until September 16th. 4 months. Now I can't refinance because of this. Good bye house.
  • Pedro | | 10 Aug 2012, 02:14 PM Agree 0
    The endorsement date is a bad call.

    The FHA, when and if it approves a mortgage that was already in the pipeline, should not go based on the "endorsement" date, but instead it should go based on when the mortgage paperwork was originated, if not the date of "mortgage closing".

    If one applies for a FHA Loan/FHA Streamline Refinance and the mortgage closes, doesn't that mean that the FHA accepted the mortgage???

    The rest of this time spent by the FHA, going through the red tape, a formality to put the FHA endorsement in the books, is BS.

    Look at the messed up situations above, these folks should be able to qualify for their MIP reductions. My mortgage closed the last week of May 2009, but the FHA endorsed my mortgage on 16JUN09. I am on the same boat and I am quite disappointed with the FHA.
  • Pedro | | 10 Aug 2012, 02:23 PM Agree 0
    Better yet, anyone who had applied for a FHA Streamline Refinance likely did so because they were not in a good position, and thus they should all automatically qualify for the MIP reduction if they so decided to do another FHA Streamline Refinance - REGARDLESS OF ANY DATE.

    We are under water like so many fellow Americans. If either of us has to relocated due to our jobs, the house will be as good as "walked-away-from". In my profession, it is a high probability. If it happens, let the bank deal with it and hopefully the next family will not get ripped off and credit damaged as us.
  • Karen Deis | | 10 Aug 2012, 02:24 PM Agree 0
    Unfortunately, the dates are set in stone and it is the ENDORESEMENT Date, which borrowers/consumers don't have any control over. Sorry!
  • Joe | | 29 Aug 2012, 10:43 AM Agree 0
    Why don't they allow everyone with an FHA mortgage to refinance 1 time under the streamline program, but deny refunds of all prior paid premiums as part of the new streamline refinance?

    No wonder the housing market is so screwed up... Who comes up with this stuff? Probably some guy working at FHA who was underwater on a house he bought. Let me guess, the closing was in January and the endorsement date was March 31, 2009? If "Our" plan is to help people out, why not target all the people in the boat, instead of the captain and crew?
  • Arthur Ners | | 28 Sep 2012, 11:06 PM Agree 0
    FHA Loan must have been endorsed before May 31, 2009 -- is the biggest SCAM in USA History and They call it A HELP ???????????. You still can refinance your FHA mortgage with lower rates but they tripled Insurance. So your total mortgage payment will be almost the same buy they will charge you tons of money . THEY CALL IT HEEEEEELP???????????? -- SCAMERS
  • Arthur Ners | | 28 Sep 2012, 11:11 PM Agree 0
    If this Government really wants to solve a housing problem or at least HELP their citizens but do not know how, Call me Scamers I will tell you how.
  • Matt | | 02 Oct 2012, 09:56 AM Agree 0
    The cutoff date was/is a bad call. Not only are homeowners not taking advantage of lower rates because of it, but HUD itself is losing money on the deal. There would be a lot more streamlines if people could keep their monthly MI rates the same.
  • Phil | | 10 Oct 2012, 09:10 AM Agree 0
    Well said! I missed this date by 20 days. There should be no date restrictions if this is truly meant to help US citizens. The Middle class getting screwed again.
  • Dan C. | | 26 Oct 2012, 01:59 PM Agree 0
    Is there any chance that this endorsement date will be changed at some point? My endorsement date is 6/18/09...and I closed at the beginning of April 2009. Like so many others on this blog, I was screwed by slow action of someone in the process.


    Is there any way that we can make our voice heard on this...and try to enact a change? Sounds like there's a lot of us in the same boat...thoughts?
  • Chris Jones | | 26 Oct 2012, 04:43 PM Agree 0
    There is a chance. It's not a good one. Watch for an announcement later in November or early December.
  • Garry | | 19 Nov 2012, 11:58 AM Agree 0
    I'm on the same boat as everyone else! I'm very disappointed that the date is based off of the endorsement date instead of closing date. I closed on May 31st, and just recently found out I did not get endorsed until June 16. I feel like financially responsible people are getting the short end of the stick, while people who can't control their spending are getting all of the help (not saying everyone is irresponsible, just that the same people who brought this housing market down are the ones now getting bailed out). Seems like I should start becoming more financially irresponsible just to get a break!!
  • Kathy | | 20 Nov 2012, 07:32 AM Agree 0
    The 05/31/2009 endorement date for the FHA premium reduction is exactly the same as the HARP dates. in order to qualify for HARP your mortgage has to have been purchased by Fannie Mae or Freddie Mac on or before 05/31/2009. This was our goverment's way of making things "fair". The current powers in Washington are not interested in giving thoughtful responses and programs to homeowners, they are interested only in appearing to "help".
  • mike | | 26 Nov 2012, 02:34 PM Agree 0
    If you have a mortgage that was originated after 6-1-2009 you probably already have a very good interest rate probably in the range of 4.75% to 5.25%. We have historically low rates right now but that in no way means everyone is entitled to them. If you took out a low down-payment mortgage which required private insurance, why should be benefit from the same low interest rate as someone who put down the money to alleviate that risk? Mortgage Insurance companies went bankrupt just as fast as the banks did, however, they aren't the ones who were bailed out. More risk due to a volatile market along with less companies for competitive pricing means new premiums are going to increase. Think of it like any other form of insurace. If something happens to drive your risk rating up then your annual premium is going to rise.

    If you originated a mortgage after 6-1-2009 then you have a historicaly incredible interest rate and no one should feel pitty on you. Stop blamaing the government because the welfare programs are designed to help the people at the bottom of the barrel not the ones who were already given an out. Most likely if you don't qualify because of the date you are not going to be in a subprime mortgage or have been swindled. There is way to much red tape and regulation for lenders to get away with that anymore. You simply just borrowed money for something that you couldn't afford or you are bitter because you feel entitled to what your neighbor got. Either way these programs have helped millions of people over the last 3 years and will continue to do so in the coming two to three years. Most likely, those dates will again be pushed back to allow more people to participate but until then the government is going to try and help the ones in dire need of a refinance, not the people who just want one because they think they deserve it.

    But you made all your payments on time?? So you are saying to did what you promised to do when you borrowed the money...
  • Mark | | 06 Dec 2012, 08:21 AM Agree 0
    Mike, what were the interest rates in January 2009? Around the 4.5 - 5% range, about what they were near the end of 2009. Yet those people are able to take advantage of this progam.

    From 2008 to 2009, the interest rate dropped from 6% to 5%. Why did the govt pick June 1, 2009 as the cutoff date? Why didn't they pick an earlier date when the interest rate was much higher? Why didn't they explain the cutoff date? Better yet, why didn't they qualify people instead of using a stupid cutoff date? Why didn't they give a stipulation such as you cannot apply for this program unless it will drop your interest rate at least 2%? We heard nothing about this, that's the real problem.
  • Paul | | 26 Feb 2013, 01:13 PM Agree 0
    Mike, Get over yourself. No one is asking for pitty here. It's a program that works on a pre-set date. Fine. But when everything in the housing and financial markets, just like in any other fields for that matter, works by a set of guidelines, rules, deadlines and when there is a procedure in place, most likely sounding something like "...entity A must submit the docs to entity B within X number of days, entity B to entity C within this number of days..." and so on, and when somebody in the chain is not doing their job in a timely manner, it results in many borrowers, otherwise perfect candidates for a streamline refi, being robbed of a huge opportunity to take full advantage of the program. Mortgagee Letter 2012-4 has a no exception clause to the cut-off date, but it most certainly also has strict procedures and deadlines in place. So I am sorry if you don't see it this way, but when my mortgage closed on March 25th of 2009 and the mortgage wasn't endorsed until June 6th, I don't know how to say it, but I am little pissed. A simple math shows that the savings would amount to approx $20k in just 10 years in my mortgage scenario. If this is small change for you, I am pretty sure that you happened in this forum by mistake. I am certain that somebody didn't do his/her job and the result is me and so many others being penalized without any wrongdoing on our part. Of course, nobody knew back then what kind of consequences this will trigger, but that's not an excuse not to the job you have to do, no matter if there are consequences or not. I for one want to get to the bottom of it and find out what was the standard turn time and why my mortgage took 73 days to get endorsed, while already making 2 payments on it before it even got endorsed, so what kind of mortgage was I paying for, anyway? Karen, any ideas, any recourse? I feel like I want to put a vicious lawyer on this.
  • J Garcia | | 15 Mar 2013, 10:48 AM Agree 0
    They can set a date so we can't get a streamline but they can go up on their MIP and still charge us the new MIP what the hell seems like they're getting their cake and eating it too
  • Tim | | 07 Mar 2014, 02:42 PM Agree 0
    I'm in the same boat as most people here. It's been a year since the last comment. Has anyone heard of any changes/updates? Is there a way we can all join together to make a case to have this changed?
  • KW | | 01 Apr 2014, 04:13 PM Agree 0
    Tim, I'd be willing to make a case. My husband and I are in the same boat too. I know our mortgage was endorsed after June 1, 2009 but we got our keys in May and had moved in! I keep getting my hopes up because we are flooded with mail constantly telling us we're prequalified for the Streamline. I wish they would look back on that date and look out how many people missed out on this!
  • Tim | | 09 Apr 2014, 08:44 AM Agree 0
    Everyone needs to contact FHFA Director Mel Watt, and continue to contact him, asking for updates and for his help in pushing this through. Is there anyone else we can contact directly to help us get HARP 3 passed? All 3 bills have stalled and our voices need to be heard, loud and often. Here is a way to contact him:
    Melvin L. Watt

    Ask him when HARP 3 will pass, ask him why it has stalled, ask him what needs to be done to get this passed. Keep asking questions until we get answers and have our voices recognized. If we all keep sitting on the sidelines, so will these bills.
  • Mike | | 07 Oct 2014, 01:30 PM Agree 0
    Sam boat as those above. Loan closed before 5/31/2009, but the mortgage wasn't insured until 2-3 months later. I was told by my PennyMac mortgage officer that either the lender sat on the paperwork or more likely, someone at FHA did.
  • Dan | | 03 Jun 2016, 04:40 PM Agree 0
    Dec 31, 2009 would be the right date for cut-off
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