HUD Releases New Calculation Software

A new version of the HECM Calculation Software that includes an updated Initial Mortgage Insurance Premium formula for HECM refinance cases was released this week on the Federal Housing Administration’s HECM Lenders webpage under “Software.”

On December 29, 2017, FHA announced in FHA INFO 17-59, the posting of the FHA Connection (FHAC) Release Notes, which outline the changes and processing instructions for lenders to calculate IMIP for HECM refinances. Version 2.5 of the Calculator conforms with requirements set forth in the Federal Register Final Rule FR-5353-F-03, Federal Housing Administration: Strengthening the Home Equity Conversion Mortgage Program.