If the MIP is to be financed, what amount do I enter for the loan amount?
	What do I enter for the 1003 Application Details of Transactions for the amount of PMI, MIP, or Funding Fee on Line G?
	Why won't the program let me enter Fields 902 and 1002 for MIP totals?
	The discount and origination fees are computed on the loan amount plus the first year premium. Do I have to do anything manually to have this computed using the correct amount?
	Is the amount of MIP collected for the monthly reserves and stored in Field 1002BA on the 1003 Application considered estimated prepaids?
	What is the difference between "level" or "declining" MIP?
	Where is the amount displayed of the MIP to be collected for the loan?
	If it is a VA loan, how does the program compute the VA funding fee?
	The amount of MIP does not appear correct. Where should I look?
	The amount of MIP is called for on the 1003 Application. I don't want to compute this amount if the program is going to compute the amount in the Master Record. Do I need to re-enter the 1003 Application after I know the amount the program computed in Field 39?
	Does MIP affect the APR?
	What does the Stop Percentage mean? How does the program know when to turn off the MIP?

If the MIP is to be financed, what amount do I enter for the loan amount?

Enter the "base" or the Original Loan Amount in Field 32 of the Master Record without MIP added. The program will automatically replace the loan amount with the new loan amount plus the MIP and compute a new P&I payment, after Field 39 MIP has been completed.

What do I enter for the 1003 Application Details of Transactions for the amount of PMI, MIP, or Funding Fee on Line G?

Do not enter anything if you do not know the amount. MC has always indicated the operator should enter this information on the third screen of the Master Record when entering a loan on the system. Field 39 of the Master Record has all the necessary information for this entry. The Master Record will rewrite the 1003 Application Details of the Transaction screen automatically after Field 39 is completed.

Why won't the program let me enter Fields 902 and 1002 for MIP totals?

This information is entered through the MIP company and plan in Field 39. Any changes necessary to the First Year Premium (Field 902) and Monthly Constants (Field 1002) must be made in Field 39 MIP.

The discount and origination fees are computed on the loan amount plus the first year premium. Do I have to do anything manually to have this computed using the correct amount?

No, the program will use the MIP company number to determine what to use as the amount to compute the discount and origination fees.

MIP companies 50-59 are considered to be FHA loans and the "base" loan amount will be used for the 801 Origination Fee. The 802 Discount is computed using the loan amount plus 902 MIP.

MIP companies other than 50-59 will use the loan amount plus 902 MIP to compute both the discount and origination fees.

Is the amount of MIP collected for the monthly reserves and stored in Field 1002BA on the 1003 Application considered estimated prepaids?

Yes, the amount stored in Field 1002BA will be reporting on the 1003 Application in the Details of Transaction Line E Estimated Prepaid Items as a part of these costs.

What is the difference between "level" or "declining" MIP?

Level means the constant will remain the same or "level" for the number of years indicated.

Declining means the constant will be computed each year on the loan balance. Therefore, the constant to be collected will be "declining" each year.

Where is the amount displayed of the MIP to be collected for the loan?

Field 344 is the amount of MIP collected as part of an installment.

Master Record Field 341 shows the monthly MIP constants. If you look at Field 341 on the Underwriting selection (01.07.09), the total payment schedule is displayed including the number of installments, P&I constants, MIP constants, and the date the payment begins. These are the lines that are called to print on the Truth-in-Lending Forms known as TPAYs.

If it is a VA loan, how does the program compute the VA funding fee?

The program used MIP Field 39 for the VA funding fee computations. Use MIP companies 60-69 and the amount of the premium automatically goes to Field 811, to be reported on the HUD Settlement Statements correctly.

The amount of MIP does not appear correct. Where should I look?

First, check the setup of the MIP plan (01.15.14.04) used for the loan. See that all fields are set up completely; the first year premium and the number of years for the level or declining premiums. Check to see if the plan is set to stop MIP at a certain LTV.

Then enter the Master Record screen starting with Field 28. Go through each field, especially the term, interest rate, and loan amount. Then go through all the fields on the screen for Field 39. This should set the program to compute the fields automatically. It is very important to let the program do its computations and not use <F5>JUMP TO END on either of these screens.

The amount of MIP is called for on the 1003 Application. I don't want to compute this amount if the program is going to compute the amount in the Master Record. Do I need to re-enter the 1003 Application after I know the amount the program computed in Field 39?

No! Just remember the Master Record field always rules. The 1003 Application fields will be reset and totals recomputed when existing the Master Record, either after original entry or after modifying the data base.

Does MIP affect the APR?

Yes! The first year premium for the MIP (902BA) and the monthly reserve (1002BA) will be included in the APR calculation.

What does the stop percentage mean? How does the program know when to turn off the MIP?

The stop percentage means the MIP is to end at the percentage of LTV you enter when you set up the MIP plan. The loan-to-value will be the sales price and the loan amount ratio.