FHA Insurance Premium Changes

by Michael Shohoney September 2, 2010 06:10

Yesterday HUD announced (Mortgageee Letter 2010-28) that the premium factors for FHA mortgage insurance will change for loans where the case number is assigned on or before October 4, 2010.  The upfront premium factors are lower while the annual renewal factors are higher.  The new premium factors are:

Upfront Premium Factor--100 Basis Points (i.e. 1.0)

Annual Renewal Factors for loans with a term greater than 15 years--LTV equal to or less than 95%, 85 Basis Points (i.e. 0.85).  LTV greater than 95%, 90 Basis Points (i.e. 0.9)

Annual Renewal Factors for loans with a term equal to or less than 15 years--LTV equal to or less than 90%, No renewal premium.  LTV greater than 90%, 25 Basis Points (i.e. 0.25)

 Additionally, the premium factors for the HECM (Home Equity Conversion Mortgage) program have changed as well.  The new factors for these reverse mortgages are:

Upfront Premium Factor--200 Basis Points (i.e. 2.0)

Annual Renewal Factor--125 Basis Points (i.e. 1.25)

 Since the ZMath Engine, ZMath, eZMath, ZMathReverse and eZMathReverse products all allow the user to enter the insurance factors for all products, a change is not required to your software.  However, changes are required for your inputs (however you may handle that).  Be sure to begin to use the correct premium factors for all loans whose case number assignment occurs on or before October 4, 2010.

 As always, we are here to help.  If you have problems or questions regarding these changes and how it will affect your system(s), please do not hesitate to contact us.

Compound to Fill the Void?

by Michael Shohoney April 1, 2010 06:37

In basic chemistry, we learn that two or more elements combine to form a compound.  Those compounds (along with the elements that form them) form our world.

Let's consider your systems and compliance needs.  Are there voids in those systems?  Be honest.  If you're like most in the industry, there have to be some holes that need to be filled.  Well, we have the solutions to your problems.  Let's take an example.  Do you have issues with the HUD requirements (i.e. the new disclosures, the GFE, the HUD 1 and 1A, closing docs, etc.)?  If you take two of the ZMathElements, you form your very own ZMathCompound.  Take the ZMathElements, ZMathGFE and ZMathAggEscrow and you have a compound that will plug any void that HUD requirements throws your system.  And, you can have the solution implemented virtually overnight.

How about another example?  Let's say you want to offer loan scenarios on your web site.  As a part of that, you want to calculate a payment amount and an APR.  Should you write your own?  Should you try to shoe horn your current system information into it?  No way!  We have ZMathElements that would work nicely for just that sort of thing.

The lesson is, why struggle with issues that can easily be addressed by an Element or Compound.  Contact us and let us help formulate your solution.

New HUD GFE Outputs Added

by Michael Shohoney January 11, 2010 07:01

As many of you are painfully aware, new HUD GFE requirements went into effect on January 1, 2010.  Those requirements included a new GFE form that has some fairly complex calculations associated with it, particularly in the "Summary of your loan" section.  The complexity of the calculations actually precipitated HUD to defer enforcement of the new rules for an additional 120 days.  This deferment is strictly enforcement.  You must still produce and distribute the form as prescribed by the regulations.

On December 1, 2009, Math Corporation released new versions of our components and software packages that include the data necessary for the new disclosures.  If you need to comply with the new regulation, don't labor over it, contact us and bring your systems up to 100% compliance!

eZMathReverse Updated

by Michael Shohoney October 5, 2009 09:35
The eZMathReverse application has been updated.  This update represents a complete rewrite of the previous version.  Not only does the new version incorporate both the original and new HECM principal rate factors, it also outputs the Truth-in-Lending statement, if applicable.  You can now use eZMathReverse as your one source of calculated figures for your reverse mortgage operation.  Give it a run and let us know how we did!

New HECM Principal Limit Factors

by Michael Shohoney September 28, 2009 10:13
Late on Wednesday, September 23, HUD announced that there was a new factor table that was to be used for all HECM loans with a case number assigned on or after October 1, 2009.  Math Corporation began implementing the new factors Thursday morning and on Friday, September 25 at 2:00 CDT released ZMathReverse with both new and old factors incorporated.  Our eZMathReverse will be updated later this week to incorporate the changes.  If these changes affect you, please notify us and we will get the new version of the component to you.


by Michael Shohoney July 14, 2009 10:12

Come follow us on twitter.  I don't know how many tweets you'll see but we'd love to have you follow along.  If you'd like, we'll follow you too.  Happy tweeting!




by Michael Shohoney May 27, 2009 11:29
Math Corporation is announcing the addition of a new version of our component products.  We now have Silverlight versions available for distribution.  If your current or future development plans include Silverlight, contact us for further information.


by Michael Shohoney May 12, 2009 09:51

Well, I am long overdue for a posting to this blog.  I'm sure all of you know how it goes when you get swamped by a project or two or three or....  Anyway, it's tough to find a few free moments.  I will have to try to be better about my responsibilities out here.

Our newest news is that we now have a Facebook page.  We invite you to view it at Facebook.  Just search us out and become a fan.  Let us know if you have any troubles finding it.

Don't Want to Implement a Component but want the ZMath Engine?

by Michael Shohoney January 29, 2009 10:55

From time to time, we find customers that for one reason or another do not want to implement a component into their system but would still like to leverage the prowess of the ZMath Engine.  Well, for people like that we've got a new method of access; a RESTful web service.  What is a RESTful web service?  (I too had to ask when our programmers suggested it as a new access method.)  REST stands for representation state transfer.  In essence, what we have is the complete, fully operational ZMath Engine accessible via our domain through an XML (extensible markup language) feed.

To access this version of the engine, you request it from our order page by clicking on ZMathEngineXML.  You estimate the number of transactions you would require per month and we return to you a Software Use Agreement.  Once we receive the accepted form in return, we supply an XML schema along with your user name and password.  You then set up your application to go to the URL for ZMathEngineXML and feed the XML stream.  The ZMath Engine picks up that stream, runs your transaction and returns an XML stream that contains all of your results.  Viola!  You've accessed the ZMath Engine component with very little commitment from you.  The beauty of this is that many progamming shops can access the engine in literally minutes once the schema is delivered.

 This service isn't designed to address everyone's needs.  Many installations will still opt to take possession of a component and host it locally.  However, for those that are trying to quickly, with very little hassle (i.e. contract negotiation, technical spec'ing, etc.), very little commitment and very little programming work access the power of the ZMath Engine, the RESTful web service, ZMathEngineXML, is the ideal solution.

If you have any questions about this exciting new development, please feel free to contact us.


by Michael Shohoney December 11, 2008 07:21
Our newest product is up on the web site and that is ZMathReverse.  ZMathReverse is a reverse mortgage calculator that structures and discloses reverse mortgage transactions.  We offer HECM, HomeKeeper and general reverse mortgage calculations.  Give it a try and let us know how we did.