FHA Streamline: read the August handbook revision and its November cutoff separately
The update was published in August, with optional early adoption and a November 10 mandatory date for the affected handbook changes.
Why the date matters
The August handbook transmittal removes obsolete COVID content from identified refinance sections. A file using a prior policy version can have a different document checklist. Confirm whether the lender implemented the change early before selecting a version in the worksheet.
Keep the calculation separate
The combined rate adds the note rate and annual mortgage insurance premium rate. For example, 7.25% plus 0.55% is 7.80%. A new rate of 6.50% plus 0.55% is 7.05%, a 75-basis-point reduction. Whether that satisfies the particular matrix depends on the loan types and term change.
Bring the right dates
For seasoning, capture the original closing date, the first payment due date and the new FHA case assignment date. For a longer term reduction, compare combined rates and the old and proposed monthly P&I plus MIP under the applicable matrix.