Blog

2009

• 09-53: Real Estate Settlement Procedures Act (RESPA) and FHA Related Policies. Clarifies how fees must be disclosed on the new GFE and HUD-1, consistent with the RESPA changes.
• 09-52: Short Sales and Short Pay Offs. Provides guidance for borrower eligibility for short sales and short payoffs. Effective immediately.
• 09-51: Adoption of the Appraisal Update and/or Completion Report (Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005). FHA adopts Appraisal Update and/or Completion Report. Effective for case number assignments on/after 1/1/10.
• 09-50: 2010 FHA Maximum Loan Limits. Discusses maximum loan limits for 2010. Conforming limit and FHA floor remain the same as in 2009.
• 09-49: Home Equity Conversion Mortgage Program: Subordinate Liens. Addresses FHA requirements for secured subordinate financing under HECM Program.
• 09-48: Second Appraisal Reporting Requirements. Eliminates need for a second appraisal on high balance loans in declining markets. Effective immediately.
• 09-47: Home Equity Conversion Mortgage (HECM) Counseling Standardization and Roster Final Rule. Provides guidance to counselors and lenders regarding the HECM Counselor Roster final regulation.
• 09-46a: Temporary Guidance for Condominium Policy. Temporary guidance for condominium project eligibility, for case numbers assigned on or after December 7, 2009 through December 31, 2010. Waives five provisions of ML 09-46b.
• 09-46b: Condominium Approval Process for Single Family Housing. Replaces ML 09-19, which implements new approval process for condominium projects. Effective for case numbers assigned on or after December 7, 2009.
• 09-45: Introduction of HUD’s Web-Based Training Application: Electronic Class (EClass) on Loss Mitigation and Servicing System. Announces that HUD’s on-line, web-based training application, EClass, is now available.
• 09-44: Home Equity Conversion Mortgage (HECM) Program — Clarification of Debenture Interest Calculation for HECM Claim Type 21; Claim Filing Instructions for HECM Claim Types 21 and 24. Provides clarification of the debenture interest calculation for HECM Claim Type 21.
• 09-43: HOPE for Homeowners Program – Comprehensive Guidance. Supersedes in their entirety Mortgagee Letters 2008-29, 2008-30 and 2009-03 and is effective for endorsements on or after January 1, 2010. Discusses key changes to the Hope for Homeowners Program.
• 09-42: Sub-Servicing of FHA-insured Mortgages. To meet the increased need for loss mitigation, the Department has no objection to mortgagees entering into subservicing agreements with other FHA-approved servicers to perform loss mitigation functions.
• 09-41: Appraisal performance standards and sanctions. Reminds mortgagees and appraisers of FHA appraisal performance standards and enforcement standards and sanctions that can be imposed by the Department upon appraisers who do not comply.
• 09-40: Policy and Procedures on Multifamily Mortgage Insurance Applications Involving Master Lease Structuring to facilitate the use of Tax Credits. Represents the Department’s final policy and procedures for Master Lease applications.
• 09-39: Updated Claim Filing and Delinquency/Default Reporting Requirements For FHA’s Making Home Affordable Modification Program (FHA-HAMP). Updates claim filing and delinquency/default reporting requirements for FHA-HAMP. Mortgagees must begin reporting the updated status codes beginning with the January 2010 reporting cycle.
• 09-38: Update on Eligibility Requirements for Nonprofit Instrumentalities (115 Waiver). Expands eligibility requirements for nonprofit instrumentalities of government to include entities the income of which is excluded from Federal taxation under § 115 of the Internal Revenue Code of 1986 (IRC).
• 09-37: Flood Zone Requirements and Responsibilities of FHA Mortgagees and Appraisers. Reminds mortgagees and FHA Roster appraisers of their responsibility to determine if a property is located within a Special Flood Hazard Area, and reiterates FHA’s eligibility requirements for properties located in such zones.
• 09-36: Revised Eligibility. Reminds appraisers and lenders that as of October 1, 2009, appraisers listed on FHA’s Appraisal Roster who are not state certified will be removed from the roster.
• 09-35: Loan Modification. Mandates that the interest rate on loan modifications be reduced to not more than 50 basis points above the FHA and FHLMC current weekly primary rounded to the nearest .125%, as of date of modification.
• 09-34: Home Equity Conversion Mortgage (HECM) – Principal Limit Factors. Announces a change in calculating the maximum HECM loans, effective October 1, 2009. The new factors to be used result in a 10% reduced maximum loan.
• 09-33: Annual Base City High Cost Percentage Revisions effective January 1, 2009. Announces the annual base city high cost percentage revisions for multi-family mortgages.
• 09-32: Revised Streamline Refinance Transactions. Announces revised procedures and re-affirms existing procedures regarding Streamline Refinance transactions, to be effective in 60 days or November 18, 2009.
• 09-31: Strengthening Counterparty Risk Management. Provides notice of several FHA program changes as a result of the enactment of the “Helping Families Save Their Homes Act of 2009” (the HFSH Act). This includes the requirement for lenders to submit an annual audited financial statement within 90 days of fiscal year end (effective January 1, 2010).
• 09-30: Appraisal Validity Periods. Announces change to the validity period for appraisals–reduced from 12 months for proposed construction and 6 months for existing construction to 4 months (120 days) for all appraisals. Effective for all case numbers assigned on or after January 1, 2010.
• 09-29: Appraisal Portability. Addresses portability of appraisals for when a borrower switches from one FHA lender to another, and an appraisal was already completed by the first lender. Effective for all case numbers assigned on or after January 1, 2010.
• 09-28: Appraiser Independence. Discusses new requirements and reiterates importance of appraiser independence. Effective for all case numbers assigned on or after January 1, 2010.
• 09-27: Multifamily Housing Accelerated Processing Guide: Chapter 9, Environmental Review. Announces the release of a revised and updated Multifamily Housing Accelerated Processing Guide, Chapter 9, with new environmental requirements.
• 09-26: Eligibility of Projects for Mortgage Insurance where Construction has Started. Temporarily authorizes and establishes policy for Section 220, 221(d) and 231 mortgage insurance programs for multi-family proposals that were unable to complete construction due to a loss of funding.
• 09-25: Electronic Annual Certification to Replace Title II Yearly Verification Report. Effective September 1, 2009, all program participants seeking renewal as an FHA-approved mortgagee must complete the electronic Annual Certification as a component of the renewal process.
• 09-24: Housing Tax Credit Coordination Act of 2008. Describes the additional authority granted under HERA and the Department’s implementation of Sections 2832 and 2834 of the Act.
• 09-23: Making Home Affordable Program: FHA’s Home Affordable Modification Loss Mitigation Option. Announces a new FHA Loss Mitigation option, the FHA-Home Affordable Modification Program (FHA-HAMP)…effective August 15, 2009.
• 09-22: Revised Temporary Authority for Multifamily Hubs to Process Waiver Requests Pertaining to the Three-Year Rule for Section 223(f) Apartments. Rescinds and replaces ML 2009-06, Temporary Authority for Multifamily Hubs to Process Waiver Requests Pertaining to the Three-Year Rule for Section 223(f) Applications.
• 09-21: Home Equity Conversion Mortgage Refinancing of Existing Loans. Discusses a technical correction for the HECM program and reiterates guidelines for refinancing HECM mortgages.
• 09-20: Processing Pre-Application Firm Invitation and Firm Commitment Extension Requests. Discusses FHA’s “policy to grant temporary authority to Multifamily Hub/Program Center Directors to grant one extension, for up to 90-days, of the pre-application firm invitation letter and one 120-day extension of an issued Firm Commitment…Expires December 31, 2009.”
• 09-19: Condominium Approval Process – Single Family Housing. FHA will now allow lenders to determine project eligibility, review project documentation, and certify to compliance of Section 203(b) of the NHA and 24 CFR 203 of HUD’s regulations…effective for all case numbers assigned on or after October 1, 2009.
• 09-18: Energy Efficient Mortgages – Increase in the Dollar Amount of Energy Efficient Improvements Energy Efficient Mortgages – Increase in the Dollar Amount of Energy Efficient Improvements. Provides guidance on the new maximum mortgage amounts for FHA insured Energy Efficient Mortgages.
• 09-17: Accuracy of Lender Data for FHA-approved Mortgagees. Eliminates paper version of yearly FHA renewal, replacing it with automated Annual Certification process completed in FHA Connection. Lenders must also confirm or update their information in the FHA Connection.
• 09-16: Manufactured Housing Policy Guidance – Property and Underwriting Eligibility. Provides guidance on manufactured housing eligibility requirements under Title II of the National Housing Act.
• 09-15: Using First-Time Homebuyer Tax Credits for the Downpayment. Provides basic information about the first-time homebuyer tax credit and how to assist homebuyers that are eligible for the tax credit.
• 09-14: Online Versions of Handbooks 4155.1, Mortgage Credit Analysis for Mortgage Insurance; and 4155.2, Lenders’ Guide to Single Family Mortgage Insurance Processing. Announces new online HUD Handbooks 4155.1 and 4155.2.
• 09-13: Guidance on FHA Model Mortgage Form for New Mexico. Provides clarification about FHA model mortgage form to be used in New Mexico in light of Fannie Mae and Freddie Mac 2008 security instrument revision.
• 09-12: Mortgagee Monitoring. Reminds you to review your company’s procedures to ensure that your organization is in full compliance with all FHA requirements.
• 09-11: Final HECM for Purchase Program. Contains new guidance for HECM for Purchase program and supercedes ML 2008-33.
• 09-10: Home Equity Conversion Mortgage Program: Clarification of Home Equity Conversion Mortgage Counseling Issues. Clarifies several issues regarding HECM counseling requirements.
• 09-09: Adoption of Market Conditions Addendum (Fannie Mae Form 1004MC/Freddie Mac Form 71) and Appraisal Reporting Requirements for Properties located in Declining Markets. FHA will adopt the Market Conditions Addendum (Fannie Mae Form 1004MC/ Freddie Mac Form 71, released November 2008) for appraisals performed on or after April 1, 2009.
• 09-08: Limits on Cash-Out Refinances. Effective for case number assignments on or after April 1, 2009, the loan-to-value (LTV) of any cash-out refinance to be insured by FHA may not exceed 85 percent of the appraiser’s estimate of value.
• 09-07: Loan Limit Increases for FHA. Provides information on changes to single family loan limits.
• 09-06: Temporary Authority for Multifamily Hubs to Process Waiver Requests Pertaining to the Three-Year Rule for Section 223(f). Grants temporary authority to Multifamily Hub Directors to grant waivers of the Three Year Rule for Section 223(f) to provide liquidity for recently constructed properties that weren’t able to secure permanent long term financing (due to the freeze in capital markets).
• 09-05: Project Lifeline Initiative’s Impact on FHA’s Foreclosure Time Frames. Under certain conditions, HUD will allow a 30 day extension of the relevant time frame (initiation of foreclosure or reasonable diligence) for participation in the Project Lifeline Initiative.
• 09-04: Tier Ranking Scores – Incentive Round 34. Announces the FHA servicing lenders’ tier rankings for Round 34.
• 09-03: HOPE for Homeowners Origination and Servicing Guidance Supplement. Incorporates changes made by EESA, supplements Mortgagee Letters 2008-29 and 2008-30 and is effective immediately.
• 09-02: Co-branded Outreach Materials. Announces free series of education and outreach flyers to distribute to prospective FHA borrowers.
• 09-01: Annual Renewal Of FHA Approval. Reflects revised HUD policy for when a lender fails to meet annual renewal of FHA approval requirements, and updates relevant Handbook provisions.

Back to Resources