HUD Mortgagee Letters

Mortgagee Letters

Two New FHA Mortgagee Letters:

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING FEDERAL HOUSING COMMISSIONER

March 8, 2010

MORTGAGEE LETTER 2010-08

TO: ALL APPROVED MORTGAGEES

ALL FHA ROSTER APPRAISERS PREPARING REO APPRAISALS

SUBJECT: HUD REO Appraisal Validity Period and Second Appraisals

This Mortgagee Letter (ML) announces the validity period for appraisals utilized to establish the listing price on HUD’s Real Estate Owned (REO) properties. In addition, this Mortgagee Letter also announces conditions for which a second appraisal may be ordered for purchasers of REO properties utilizing FHA financing…

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING FEDERAL HOUSING COMMISSIONER

March 8, 2010

MORTGAGEE LETTER 2010-09

TO: ALL APPROVED MORTGAGEES

ATTENTION: SINGLE FAMILY SERVICING MANAGERS

SUBJECT: Tier Ranking Scores – Incentive Round 38

This Mortgagee Letter announces the FHA servicing lenders’ Tier Ranking Scores for Round 38. They were calculated using established criteria for HUD’s Tier Ranking System (TRS), based on activity during the Performance Period from October 1, 2008 through September 30, 2009. Tier Ranking Scores determine if a lender is eligible for additional incentives for calendar year 2010…

To read these mortgagee letters and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.


Letter From David Stevens HUD Secretary

 

Recently FHA announced significant changes to strengthen its capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. These changes are the latest in a series of efforts we have undertaken to better position FHA to manage its risk while continuing to support the nation’s housing market recovery.

Striking the right balance between managing risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important to FHA. When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history.

By continuing to provide affordable, sustainable mortgage products, FHA will continue to support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.

Let me take a moment to provide more details on these policy changes:

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending

  1. o The initial up-front MIP increase is included in Mortgagee Letter 2010-02, which was published on January 21st and will go into effect April 5, 2010.

    (Click here to view the full text of Mortgagee Letter 2010-02)

    1. o The first step will be to raise the up-front MIP by 50 basis points to 2.25% and request legislative authority to increase the maximum annual MIP that FHA can charge so we shift some of the premium increase from the up-front MIP to the annual MIP.
    2. o This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing.

2. Update the combination of credit scores and down payment requirements for new borrowers

  1. o New borrowers will now be required to have a minimum credit score of 580 to qualify for maximum financing. New borrowers with less than a 580 credit score will be limited to a 90% loan-to-value ratio.
  2. o This allows FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.

HUD.gov/fha

HUD press releases

RESPA

 

  1. o This change will be posted in the Federal Register shortly and, after a 30-day notice and comment period, would go into effect in the summer.

3. Reduce allowable seller concessions

  1. o FHA borrowers will be limited to 3% seller concessions.
  2. o The current level exposes FHA to excess risk by creating incentives to inflate appraised value. This modification will bring FHA into conformity with industry standards on seller concessions.
  3. o This change will be posted in the Federal Register shortly, and after a 30-day notice and comment period, would go into effect in the summer.

4. Increase lender enforcement

  1.  
    1. o Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
    2. Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
    3. This change was included in Mortgagee Letter 2010-03 published on January 21, 2010.
  2. (Click here to view the full text of Mortgagee Letter 2010-03)

    1.  
      1. o Implement statutory authority through regulation of Section 256 of the National Housing Act to allow for enforcement of indemnification provisions for lenders using delegated insuring process (Lenders Insurance).
      2. Specifications of this change will be posted in March and, after a 60-day notice and comment period, would go into effect in the summer.
      3. The authority will allow FHA to obtain indemnifications on "material" errors within underwriting of a loan that had clear impact on the loan decision.
      4. The authority does not provide for indemnification of loans that were underwritten to guidelines, but have gone delinquent due to a borrower or marketplace change.
      5. o Additionally, HUD is pursuing legislative authority as follows:
      6. Amend Section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would expand the authority discussed above to all lenders for the origination and underwriting of FHA-insured loans.
      7. Authority permitting HUD maximum flexibility to establish separate "area(s)" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches.

 

I want to take this opportunity to mention another change we recently announced. FHA published a notice announcing that FHA has waived the regulation that prohibits the use of FHA financing to purchase properties that are being resold within 90 days of the previous acquisition. The waiver of the regulation took effect for all sales contracts executed on or after February 1, 2010.

During this period of high foreclosures, FHA wants to encourage investors that specialize in acquiring and renovating properties to renovate foreclosed and abandoned homes with the objective of increasing the availability of affordable homes for homebuyers. Our aim is to help stabilize real estate prices as well as neighborhoods and communities where foreclosure activity has been high. The waiver is applicable to all properties being resold within the 90-day period after prior acquisition and is not limited to foreclosed properties. The waiver, however, has conditions, and eligible mortgages must meet the conditions specified in this notice found at http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf.

In order to further clarify language in the waiver, we will be publishing a notice shortly in the Federal Register, followed by a Mortgagee Letter, which will lay out these changes in more detail.

Listed below are some questions we have been asked frequently since announcing the above policies:

Q: Why didn’t you just impose an across-the-board increase in required down payment?

A: There are a range of factors that determine how risky a loan can be, not just the down payment level. The data clearly show that the greatest problems are created by a combination of a low down payment and other factors, like low credit scores, higher back-end ratios, or other debt characteristics. Indeed, loans with lower down payments and higher credit scores perform better on average than some sets of higher down payment, lower credit score loans. So in addressing risk, we need to take a focused approach to ensure that we are targeting our measures appropriately. Our change enables a broader selection of credit-worthy borrowers than would be afforded by an across the board increase in the down payment requirement, while avoiding the significant, disproportionate impact on minorities that such an overbroad measure would have.

Q: There have since been some modifications to the Lender Enforcement Policy. Can you explain what the modifications are and the reasons for the change?

A: We have received a number of inquiries about this. The "Direct Endorsement Lenders Performance Report" (DE Lender Report) shows the performance of FHA’s active Direct Endorsement Lenders against the national averages for seriously delinquent loans and claims. Data derived for this report includes DE Lenders with one or more loans underwritten and zero or more seriously delinquent loans (90+ day delinquencies) and claims within the

past 24 months. The DE Lenders are divided into segments based on the total number of loans underwritten within the past 24 months. The DE Lender Report consists of three lists: Mega Segment, Highest Ranked by Segment and Lowest Ranked by Segment.

Our Quality Assurance Division is in the development stages of a Lender Scorecard intended to provide a comprehensive view of a lender rather than just looking at a lenders underwriting performance. The Lender Scorecard will show the lender’s performance in four review categories: underwriting, delinquency management, loss mitigation, and program compliance. The lender will be scored in each review category and given a final overall rating, such as excellent, good, fair, etc. The scorecard will be made available later this year.

Q: Will these changes be enough?

A: The policy changes announced in September and those announced last month together comprise the most dramatic changes to FHA in recent history. These changes represent significant, concrete steps to minimize FHA’s exposure to losses in the existing loan portfolio, increase the quality and sustainability of new FHA-insured loans, and improve FHA’s capital. Additionally, FHA is continuing to assess the appropriateness of its risk management policies and their impact on the sustainability of the mutual mortgage insurance (MMI) reserves, and may decide upon further changes as a result of this ongoing assessment. We are asking Congress for authority to increase the statutory cap on the annual MIP and to permit termination of origination and underwriting approval on a national basis. These changes will give FHA the authority necessary to continue to respond effectively.

In closing, I hope you find this overview and Q&A helpful. As I mentioned in the beginning, these changes are designed to significantly strengthen FHA, allowing it to better fulfill its mission. These actions, together with the work being done by this Administration, are helping to rebuild the housing finance system. And, because housing is the cornerstone of our economy, as the housing market improves, that improvement will ripple through every financial sector helping us to create the stabilization necessary for recovery.

# # #


Mortgagee Letter 2009-28

Important FHA notice for all mortgagees: The February 15, 2010 Implementation Date Will NOT Change for Mortgagee Letters 2009-28 and 2009-51:

 

Implementation Date for New Requirements in ML 2009-28:

 

As indicated in the industry email of December 22, 2009, enactment of ML 2009-28 (Appraiser Independence) WILL be implemented February 15, 2010. ML 2009-28 (originally planned for a January 1, 2010 implementation) has two parts: a) prohibition of mortgage brokers and commission-based lender staff from the appraisal process, and b) appraiser selection in FHA Connection.  The effective date for both sections of this guidance will take effect for all case numbers assigned on or after February 15, 2010.  This extension has allowed FHA and lenders additional time to adjust systems to accommodate the changes. Detailed instructions on changes to FHA Connection will be issued in a new mortgagee letter, which was delayed due to federal offices being shut down the week of February the 8th and will be released the week of February 15th.  

 

However, lenders will be able to secure a case number assignment in FHA Connection via the Case Number Assignment Screen without inputting the appraiser information. The Case Number Assignment Screen will no longer capture the assignment choice, license ID and assignment date. Instead, lenders will be required to enter all appraisal data, including the appraiser ID, in the Appraisal Logging Screen once the completed appraisal is received by the lender and prior to closing the loan. 

 

Implementation Date for ML 2009-51:

 

ML 2009-51, Adoption of the Appraisal Update and/or Completion Report, states an effective date of January 1, 2010. The effective date was extended and will apply to all case numbers assigned on or after February 15, 2010. This extension  provided additional time needed by FHA and lenders to adjust their systems to accommodate use of the form.

 

All FHA Mortgagee Letters can be read online at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

 

AND

 

Freddie Mac Alternatives to Foreclosure Training for Housing Counselors:
 
March 1, 2010 - Atlanta, Georgia. Seats are filling up fast so register soon for this course sponsored by Freddie Mac. This 1-day workshop provides housing counselors with an understanding about analyzing default situations to determine possible alternatives to foreclosure. It provides information about workout options (with an emphasis on short payoffs & mortgage modifications), applying Freddie Mac requirements, and exploring options that can help keep borrowers in their homes. Registration Required, No fee. For more info: http://www.freddiemac.com/ontrack/html/LearningCenter/ClassDescription.jsp?crsNum=ATFHC

Reminder from Freddie Mac to all Housing Counselors:

Freddie Mac requires signed written authorization from the borrower before they can communicate with Housing Counselor about any borrower's case.  95% of the requests Freddie Mac receives from housing counselors do not contain the authorization.  This delays response time on the case because Freddie Mac must have the authorization to continue.  Please provide the signed written authorization when you first contact Freddie Mac about a borrower.  

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RESPA Rule Seminar:

 

February 19, 2009 – New York, NY. RESPA Rule Seminar. Hosted by HUD’s Office of the Inspector General. Friday, 10:00 a.m. – 2:00 p.m. at the New York Federal Building, 26 Federal Plaza, New York, NY 10278-0068 (Duane Street Entrance), 6th floor Conference Room A & B. If you have any questions please call Migdalia Murati at: 973-776-7316 or David McCarraher at: 215-430-6627. Electronic Registration Required, no fee. Registration link is: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=367&update=N


Mortgagee Letter 2010-05

New FHA Mortgagee Letter:

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER

MORTGAGEE LETTER 2010-05

TO: ALL APPROVED NONPROFIT AGENCIES, ALL APPROVED MORTGAGEES, ALL GOVERNMENT AGENCIES

SUBJECT: Announcement of the FHA Nonprofit Data Management System

The Department of Housing and Urban Development is pleased to announce the Federal Housing Administration's (FHA) newly developed Nonprofit Data Management System (NPDMS). NPDMS is an automated web-based program management tool designed to improve the application, recertification, and reporting process for organizations that participate in the Office of Single Family Housing (OSFH) activities and to assist HUD staff with the daily administration of FHA’s Nonprofit Program activities…

To read this mortgagee letters and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2010 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.


FHA Increases Upfront MIP Starting in April To Pay For Corrupt Underwriting.. Now 2.25%

FHA Announces Policy Changes to Address Risk and Strengthen Finances:
New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities


FHA Commissioner David Stevens announced on 01/20/10 a set of policy changes to strengthen the FHA's capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation's housing market recovery.

The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement...

To read this press release in its entirety please visit: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016

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Two New FHA Mortgagee Letters:

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER

January 21, 2010

MORTGAGEE LETTER 2010-03

TO: ALL APPROVED MORTGAGEES

SUBJECT: Mortgagee Approval for Single Family Programs – Extended Procedures for Terminating Underwriting Authority

This Mortgagee Letter is being issued to advise that the Department of Housing and Urban Development (HUD) will be using its regulatory authority to terminate a mortgagee’s authorization to underwrite single family loans in geographic areas where the lender has a high rate of early defaults and claims…

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER

January 21, 2010

MORTGAGEE LETTER 2010-02

TO: ALL APPROVED MORTGAGEES

SUBJECT: Increase in Upfront Premiums for FHA Mortgage Insurance

Effective for FHA loans for which the case number is assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent. This policy change will increase premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions…

To read these mortgagee letters and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.


HUD Eliminating the 90 Flipping Rule

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS

Measure to help bring stability to home values and accelerate sale of vacant properties

In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties.  The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes…

…The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner.  To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

·         All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.  

·         In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.

·         The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website at: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf


HUD to Assist Homeowners Facing Problems with Chinese Drywall Imports

HUD TO ASSIST HOMEOWNERS FACING PROBLEM DRYWALL
Temporary relief available to make home repairs affordable for at-risk borrowers

WASHINGTON – On December 22, 2009, the U.S. Department of Housing and Urban Development announced that FHA-insured families experiencing problems associated with problem drywall may be eligible for assistance to help them rehabilitate their properties.  In addition, HUD’s Community Development Block Grant (CDBG) Program may also be a resource to help local communities combat the problem.

FHA is reminding its approved lenders that they are to offer special forbearance for borrowers confronted with the sudden effects of damaging drywall products in their homes including the financial hardship associated with related home repairs. 

“We’re instructing our FHA mortgage lenders nationwide to extend temporary relief to allow these families time to remove problem damaging drywall and repair their homes,” said FHA Commissioner David Stevens.  “We want to remove additional pressures for these families as they find solutions to allow them to return to a safe, decent and sanitary home."

FHA Type 1 Special Forbearance (noted in Mortgagee Letter 2002-17, available at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/ml02-17.doc ) provides relief that is not typically available under an informal forbearance or repayment plan.  This relief provided can include one or more of the following:

  • suspension or reduction of payments for a period sufficient to allow the borrower to recover from the cause of default;
  • a period during which the borrower is only required to make their regular monthly mortgage payment before beginning to repay the arrearage; or
  • a repayment period of at least six months.

HUD is instructing lenders that no late fees are to be assessed while the borrower is making timely payments under the terms of the Special Forbearance plan. The total arrearage for a Type 1 Special Forbearance cannot exceed 12 months of delinquent payments. Lenders can review borrower applications and make a determination as to the most appropriate loss mitigation tool including loan modification, partial claim, or FHA HAMP.  Any questions or clarification regarding the Type 1 Special Forbearance should be directed to the HUD National Servicing Center at 888-297-8685.

Read the entire press release at http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2009/HUDNo.09-237 


FHA Appraisal Process Delayed Until Feb 15

Delayed Implementation Date for New Requirements in ML 2009-28

Enactment of ML 2009-28, Appraiser Independence, will be delayed until February 15, 2010. ML09-28 (originally planned for a January 1, 2010 implementation) has two parts:  a) prohibition of mortgage brokers and commission-based lender staff from the appraisal process, and b) appraiser selection in FHA Connection.  The effective date for both sections of this guidance will now take effect for all case numbers assigned on or after February 15, 2010.  This extension will provide FHA and lenders additional time to adjust systems to accommodate the changes.

Detailed instructions on changes to FHA Connection will be issued in a new mortgagee letter. However, lenders should be aware that the requirement for inputting the appraiser ID and the appraisal assignment date in the FHA Connection case number assignment screen will be removed.  Instead, lenders will be required to enter all appraisal data, including the appraiser ID, in the Appraisal Update Screen once the completed appraisal is received by the lender and prior to closing the loan. 

Delayed Implementation Date for ML 2009-51

ML 2009-51, Adoption of the Appraisal Update and/or Completion Report, states an effective date of January 1, 2010. The effective date is being extended and will now apply to all case numbers assigned on or after February 15, 2010. This extension will provide additional time needed by FHA and lenders to adjust their systems to accommodate use of the form.


Mortgagee Letter 09-52

New FHA Mortgagee Letter:

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING FEDERAL HOUSING COMMISSIONER

Date: December 16, 2009

To: All Approved Mortgagees

Mortgagee Letter 09-52

Subject Short Sales and Short Pay Offs 

This mortgagee letter provides guidance to lenders and underwriters regarding borrower eligibility when a previously owned property was sold for less than what was owed (short sale), or  there is principal write down of indebtedness that cannot be refinanced into a new mortgage (short pay off)…

To read this mortgagee letter and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.

AND

All Agencies Participating in HUD’s Housing Counseling Program:

As we start the new year, the Office of Single Family Housing would like to clarify that all agencies participating in HUD’s Housing Counseling Program must comply with the housing counseling work plan requirement, as it is essential to maintaining your status as a participating agency…

To read this notice in its entirety, please visit: http://www.hud.gov/offices/hsg/sfh/hcc/msgs/20091217.txt


Morgagee Letter 2009-51

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER

December 7, 2009

MORTGAGEE LETTER 2009-51

TO: ALL APPROVED MORTGAGEES, ALL FHA ROSTER APPRAISERS

SUBJECT: Adoption of the Appraisal Update and/or Completion Report (Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005)

The Federal Housing Administration (FHA) is adopting the Appraisal Update and/or Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. This is a dual-purpose form. Part A, Summary Appraisal Update Report, provides for updates of existing appraisals when the appraiser concurs with the original appraisal report and updates the appraisal by incorporating the original appraisal report. Part B, Certification of Completion, provides for compliance repair and completion inspections for existing and new construction dwellings. This mortgagee letter is effective for all case number assignments on or after January 1, 2010

To read this mortgagee letter and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.


Mortgagee Letter 2009-50

New FHA Mortgagee Letter:

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING FEDERAL HOUSING COMMISSIONER

November 25, 2009

MORTGAGEE LETTER 2009-50

TO: ALL APPROVED MORTGAGEES

SUBJECT: 2010 FHA Maximum Loan Limits

This Mortgagee Letter provides notice of the 2010 comprehensive update to the Federal Housing Administration’s (FHA) single-family loan limits, under the authority of the recent passage of the Continuing Resolution, 2010 (CR) as part of the Department of Interior, Environmental, and Related Agencies Appropriations Act, Public Law 111-88…

To read this mortgagee letter and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.

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New FHA Proposed Rule:

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Federal Housing Administration (FHA):

24 CFR Part 202 [Docket No. FR 5356-P-01] RIN 2502-AI81 [[Page 62522]]

TITLE: Continuation of FHA Reform--Strengthening Risk Management Through Responsible FHA-Approved Lenders

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing Commissioner, HUD.

ACTION: Proposed rule.

SUMMARY: Through this proposed rule, HUD continues its efforts to streamline, modernize, and strengthen the mortgage insurance functions and responsibilities of FHA, as authorized by provisions contained in the National Housing Act, as amended by the FHA Modernization Act of 2008, and further supported by the Helping Families Save Their Homes Act of 2009…

To read the proposed rule in its entirety, please visit: http://edocket.access.gpo.gov/2009/E9-28335.htm

AND

FHA Housing Counseling Record Keeping Training Comes to Southern California:

December 10, 2009 - Santa Ana, CA. Housing Counseling Record Keeping Training for nonprofit agencies & local governments who are currently participating in HUD’s Housing Counseling Program. Learn about program administration/record keeping, monitoring compliance & grant reporting. Training will also include updates on FHA mortgage programs. Registration required, no fee. More info at: http://www.hud.gov/apps/calendar/event.cfm?state=ca&record=10053&scheduleID=9814&calendarID=8  RSVP today to reserve your place, seating will go fast for this workshop.


Mortgagee Letter 2009-49

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER

November 18, 2009

MORTGAGEE LETTER 2009-49

TO: ALL FHA-APPROVED MORTGAGEES

ALL HUD-APPROVED HOUSING COUNSELING AGENCIES

SUBJECT: Home Equity Conversion Mortgage Program: Subordinate Liens

This Mortgagee Letter iterates guidance issued under Mortgagee Letter 2006-20 addressing FHA requirements for secured subordinate financing under the Home Equity Conversion Mortgage (HECM) Program...

To read this mortgagee letter and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.

AND

FHA Condo Policy Call:

In follow-up to the presentation on Mortgagee Letters 2009-46 (a) and (b), FHA will hold another conference call to take additional questions. The call is scheduled for Wednesday, 12/02/09 at 2:00pm Eastern time.  The call-in number is (866) 207-0413 and the conference id number is 43363152.

To read mortgagee letter 2009-46 (a) and (b) and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page


Mortgagee Letter 2009-48

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER

MORTGAGEE LETTER 2009-48

TO: ALL APPROVED MORTGAGEES, ALL FHA ROSTER APPRAISERS

SUBJECT: Second Appraisal Reporting Requirements

This mortgagee letter modifies FHA’s requirements for second appraisals, eliminating the need for a second appraisal on high balance loans in declining markets. This change is effective immediately…

To read this mortgagee letter and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.


Mortgagee Letter 2009-46B

HUD Mortgagee Letter, FHA Mortgagee Letters — Posted by jerroldmayer @ 13:09

November 6, 2009

MORTGAGEE LETTER 2009-46 A

TO: ALL APPROVED MORTGAGEES

SUBJECT: Temporary Guidance for Condominium Policy

In Mortgagee Letter 2009-46 B, the Federal Housing Administration (FHA) announced the permanent baseline guidance for condominium project eligibility. This Mortgagee Letter (ML) waives five provisions of that guidance and serves as a temporary directive to address current housing market conditions. This temporary guidance is effective for all FHA case numbers assigned on or after December 7, 2009 through December 31, 2010, except as noted for the “Spot Loan” Approval Process…

AND

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING FEDERAL HOUSING COMMISSIONER

November 6, 2009 MORTGAGEE LETTER 2009-46 B

TO: ALL APPROVED MORTGAGEES

ALL FHA ROSTER APPRAISERS

SUBJECT: Condominium Approval Process for Single Family Housing

In accordance with the passage of the Housing and Economic Recovery Act of 2008 (HERA), the Federal Housing Administration (FHA) is implementing a new approval process for condominium projects and insurance requirements for mortgages on individual units, as authorized under Section 203(b) of the National Housing Act. The requirements of this Mortgagee Letter are effective for all case numbers assigned on or after December 7, 2009, except as noted. This Mortgagee Letter revises and consolidates existing guidance, and therefore replaces Mortgagee Letter 2009-19…

To read these mortgagee letters and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.

If you have questions about either of these new FHA Mortgagee Letters please email: info@fhaoutreach.com or visit: http://www.fhaoutreach.gov/FHAFAQ

AND

New FHA Appraisal Webinar:

November 18, 2009 - Webinar: The FHA Appraisal Process, Existing Policy & Recent Updates. FHA staff will present information on the FHA appraisal process, appraising in a declining market, flipping rules, & recent changes to the condominium approval process. This webinar will take place at 2:00PM to 4:00PM Eastern time. Registration required, no fee. We recommend that participants use the system check function on the registration/launch page to confirm they have the necessary software installed to view the webinar. Do not delay, RSVP today, this webinar will fill up fast. More info at: http://www.visualwebcaster.com/FHA/63816/reg.html

This webinar is for lenders & business partners that do business with the FHA Philadelphia Homeownership Center jurisdiction in the states of Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia.

Other FHA Webinars:

November 20, 2009 – FHA HECM Webinar. This FREE Webinar training will provide an overview of the HECM process. Covered topic will include: HECM purchase transactions, refinances, and updates to the HECM process. Registrants will receive an email confirmation prior to the Webinar with a link, a toll-free dial-in number, and instructions for participating in the training. Registrants must have internet access. Registration required, no fee. More info at: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=299&update=N

November 30, 2009 – FHA Lender Insurance Webinar. This FREE Webinar training will provide an overview of insuring procedures for lenders who want to become an LI Lender and a refresher for current LI Lenders. The topics will include; common NORs, rejects, case warnings, and TOTAL Scorecard data. Registrants will receive an email confirmation prior to the Webinar with a link, a toll-free dial-in number, and instructions for participating in the training. Registrants must have internet access. Registration required, no fee. More info at: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=301&update=N

AND

New FHA training and events around the nation:

November 12, 2009 - Atlanta, GA. RESPA Seminar. HUD is hosting a 2 hour seminar on the new RESPA Rule. Guest Presenter is Ivy Jackson, Director, HUD Office of RESPA & ILS. Registration required, no fee. More info at: http://www.hud.gov/apps/calendar/event.cfm?state=ga&record=10008&scheduleID=9769&calendarID=14

November 12-13, 2009 - Denver, CO. Section 8 Homeownership Training. Visit the FHA Single Family exhibit table at the HUD and Office of Public Housing's Section 8/Housing Choice Voucher Program training event. This free two-day workshop is open to Public Housing Agencies and their Home Choice Voucher partners as well as to lenders, counseling agencies, non-profit organizations, realtors and other Industry partners. Registration required, no fee. More info at: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventid=278&update=N

November 13-16, 2009 San Diego, CA.  National Association of Realtors Conference & Expo. FHA Commissioner David H. Stevens will address current issues including loan limits, condo rules, appraisals, and the solvency of the FHA insurance fund. Registration required, fee. More info at: http://www.realtor.org/Convention.nsf/

November 18-20, 2009 - San Diego, CA. National Reverse Mortgage Lenders Association Annual Meeting & Expo. Lenders, brokers & housing counselors welcome. Registration required, fee. More info at: http://www.nrmlaonline.org/

November 21, 2009 - Grand Junction, Colorado. Western Colorado Foreclosure Prevention Fair. FHA staff, housing counselors, community resource agencies and mortgage servicers will be available to assist the public. Saturday 10 am - 2 pm at Canyon View Vineyards Church, 736 24 1/2 Road, Grand Junction, CO. Free.

December 4, 2009 - Denver, Colorado. FHA Single Family Updates and Affordable Housing Programs Class. Real estate licensing or membership in the Denver Board of Realtors not required to attend this class. Friday from 9 am to 1pm at the Denver Board of Realtors office, 4300 E. Warren Avenue, Denver, CO 80222. $10 for Denver Board members, $20 for non-members. Call recording at 303-303-8500 to register or email Susan.R.Lyons@hud.gov for more information.

February 23-24, 2010 - Oklahoma City, OK. Early Delinquency Servicing & Loss Mitigation Program Training for HUD-Approved mortgagees, HUD-approved Housing Counselors & Nonprofit Housing Counselors. Registration required, no fee. More info at: http://www.hud.gov/offices/hsg/sfh/nsc/training.cfm

May 18-19, 2010 - Oklahoma City, OK. Early Delinquency Servicing & Loss Mitigation Program Training for HUD-Approved mortgagees, HUD-approved Housing Counselors & Nonprofit Housing Counselors. Registration required, no fee. More info at: http://www.hud.gov/offices/hsg/sfh/nsc/training.cfm

August 24-25, 2010 - Oklahoma City, OK. Early Delinquency Servicing & Loss Mitigation Program Training for HUD-Approved mortgagees, HUD-approved Housing Counselors & Nonprofit Housing Counselors. Registration required, no fee. More info at: http://www.hud.gov/offices/hsg/sfh/nsc/training.cfm

___________________________________________________________________________________________


HUD Mortgagee Letter 2009-45

General, HUD Mortgagee Letter, FHA Mortgagee Letters — Posted by jerroldmayer @ 10:05

New FHA Mortgagee Letter:

October 27, 2009

MORTGAGEE LETTER 2009-45 

TO: ALL FHA-APPROVED MORTGAGEES, ALL HUD-APPROVED HOUSING COUNSELING AGENCIES

ATTENTION: Single Family Servicing Managers

SUBJECT: Introduction of HUD’s Web-Based Training Application: Electronic Class (EClass) on Loss Mitigation and Servicing System

The purpose of this Mortgagee Letter is to announce that the Department’s on-line, web-based training application, EClass, is now available. The EClass System will provide additional training on FHA’s Loss Mitigation Programs, including FHA’s Home Affordable Modification Program (FHA-HAMP), as well as continuing education on issues that have generated the most industry questions and requests for further training. It is our expectation that servicers will fully utilize the training to ensure that they are well-informed of FHA’s Loss Mitigation policies and procedures...

To read this mortgagee letter and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters and click on the letter of your choice. An index of FHA Mortgagee Letters from previous years can be found on the same page.

AND

Southern California Foreclosure Counselor Forum:

November 13, 2009 - Costa Mesa, CA. Southern California Foreclosure Counselor Forum. A Peer to Peer Forum for HUD Approved Counseling Agencies. Sponsored by OCHOPC, HUD & NeighborWorks®. Learn about best practices, successful strategies & challenges in helping borrowers resolve delinquent mortgage situations, improve program results, loan modification programs & submission methods, an update from the National Foreclosure Mitigation & Counseling program (NFMC), & attend a roundtable discussion on mitigating the effects of being a foreclosure counselor & managing a foreclosure program. Registration required, no fee. More info at: http://www.hud.gov/offices/hsg/sfh/events/sca111309.pdf


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