Contact   |   QLink Login   |   Client Login    |   Employee Login

Posts Tagged ‘hud guidelines’

Feb
04
2010

MCA Monthly Update – February 2010

MCA Logo

MCA Monthly Update
February 2010
In This Issue
Underwriting & Processing Tips
FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Quick Links
.

.
.

Lending Manuals
Stay Updated
.
Join Our Mailing List!

Welcome to the MCA Monthly Update. To help you stay compliant and up-to-date, our newsletters contain underwriting tips, processing tips, and compliance updates. We hope that you find the content informative and useful. As always, your feedback is appreciated.

MCA will be offering free monthly webinars to answer your compliance questions. February’s webinar will be about the new Good Faith Estimate.

Making sense of the new GFE

.

Get answers to your questions about the new GFE.

Join our free webinar on Thursday, Feburary 18 at 12:00 pm MST.
.

We will be emailing invitations Friday 2/5/2010. If you are interested in joining the webinar, click the link in Friday’s invitation to register. If you do not receive an invitation but would like to join, please reply to this email, or email: info@mortgagecomplianceadvisors.com.
.
There has been a lot of information about the new GFE, and we want to help you make sense of it all. Send us your questions and our professionals will answer the top five. Any questions that are not addressed in the call will be answered in next month’s newsletter.
.
.
If you have any questions, simply reply to this email or call us at 877-226-3216.

For real time compliance news, you can now follow us on Twitter and Facebook.
Underwriting & Processing Tips
Early Payment Defaults (EPDs)

Don’t forget that for FHA files, you need to audit 100% of your EPDs:

“In addition to the loans selected for routine quality control reviews, mortgagees must review all loans going into default within the first six payments. As defined here, early payment defaults are loans that become 60 days past due.” (See HUD 4060.1 7-6 (D))

Furthermore, in HUD’s ML 10-03, HUD announced its authority to terminate DE underwriting authority if a mortgagee has particularly high default and claim rates.

24 Month Period Ending Date

Termination Threshold

December 31, 2009

300%

June 30, 2010

250%

December 31, 2010

200%
.
*Make sure your compare ratio of defaults is below the termination threshold. You can check your compare ratio on HUD’s Neighborhood Watch.

FHA Update

- Announces FHA policy changes:

  • Increases mortgage insurance premium (MIP)
  • Updates FICO scores and down payments
  • Reduces allowable seller concessions from 6% to 3%
  • Increases enforcement on FHA lenders

View the entire press release

- – - – - - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -


- Extends special authority granted in ML 09-20 (Processing Pre-Application Firm Invitation and Firm Commitment Extension Requests) to January 11, 2011. View the entire letter

- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -

ML 10-02: Increase in Upfront Premiums for FHA Mortgage Insurance

- Increases mortgage insurance premium to 2.25%. Effective for case numbers assigned on or after April 5, 2010. View the entire letter

- – - – - – - – - - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -

- Extends FHA’s authority to terminate DE underwriting authority in areas where the lender has a high rate of early defaults and claims. View the entire letter

- – - – - – - - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -

- Provides guidance on how to assist borrowers facing imminent default. “At this time FHA is limiting the loss mitigation options that may be used…to forbearance and FHA-HAMP.” View the entire letter

- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -

ML 10-05: Announcement of the FHA Nonprofit Data Management System

– Announces newly developed Nonprofit Data Management Systems (NPDMS).

- “Effective immediately…organizations participating in OSFH programs will be required to use NPDMS to initiate and manage their FHA activities…” View the entire letter

- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -
.
To view all HUD Mortgagee Letters for the year, visit HUD’s website.

- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -

*We offer FHA, VA, and HECM reference manuals with regulations and policies updated quarterly. For more information, visit our website or call 877-226-3216.

Fannie Mae Update

LL-2010-01: Special Approval Designation for Established Florida Condominium Projects

- Implements a new “Special Approval” designation for condominium projects located in Florida.  View the entire announcement

- – - – - – - – - - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -
.
.
- Updates reporting and reconciliation requirements for reverse mortgages. Also sets fines for non-compliance of reporting. View the entire announcement

- – - – - – - – - – - - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -
.

SVC-2010-02: Update to Imminent Default Guidance for Mortgage Loans Evaluated for the Home Affordable Modification Program

- Introduces use of Imminent Default Indicator, requires use of verified income documentation before entering borrower into a trial period plan, changes max cash reserves allowed.

- Also requires imminent default evaluation for all borrowers that are either current or in default but less than 60 days delinquent.

View the entire announcement

- – - – - – - – - – - - - – - - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -
To view all Fannie Mae Announcements and Letters for the year, visit Fannie Mae’s website.
Freddie Mac Update

Bulletin 2010-1: Home Affordable Modification Program

- Announces changes to HAMP, mandates use of newly introduced Imminent Default Indicator (effective March 1, 2010), revises imminent default requirements, etc.  View the entire bulletin

- – - – - – - – - – - – - – - – - - - – - – - – - – - – - – - – - – - – - – - – - – - – - – -
.
Bulletin 2010-2: FHA-Approved Project Review for Condominiums
.
- Revises guide so that “Sellers may only use FHA Condominium Project approval to determine that Mortgages secured by units in Condominium Projects are eligible for sale to Freddie Mac for the following Mortgage types:

  • FHA Mortgages
  • VA Mortgages
  • Section 502 Guaranteed Rural Housing (GRH) Mortgages
  • HUD Guaranteed Section 184 Native American Mortgages”

.
.
- – - – - – - – - – - – - – - – - - - – - – - – - – - – - – - – - – - – - – - – - – - – - – -

To view Recent Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.
VA Update

Circular 26-10-01

- Provides guidance on fees and charges, in response to new RESPA rule. Also announces new documentation requirements and elimination of a previously required disclosure statement.  View the entire circular

- – - – - – - – - – - – - – - – - - - – - – - – - – - – - – - – - – - – - – - – - – - – - – -
.
.
- Provides instructions for modifying VA loans in accordance with the Making Home Affordable (MHA) program. Effective 2/1/10.  View the entire circular
.
- – - – - – - – - – - – - – - – - - - – - – - – - – - – - – - – - – - – - – - – - – - – - – -

Circular 26-09-17, Change 1

- Extends rescission date of Circular 26-09-17 (Interim Process for Pre-Approval of Loan Modifications on Current Loans) from January 1, 2012 to January 1, 2014.  View the change

- – - – - – - – - – - – - – - – - - - – - – - – - – - – - – - – - – - – - – - – - – - – - – -
.

- Extends rescission date of Circular 26-08-3 (Processing Transfers of Ownership Under VALERI) from January 1, 2010 to January 1, 2012.   View the change

- – - – - – - – - – - – - – - – - - - – - – - – - – - – - – - – - – - – - – - – - – - – - – -
.
To view VA Circulars/News for 2010, visit the VA website.
Feel free to call us with any questions at 877-226-3216.
No Comments »
Jan
20
2010

HUD Press Release: FHA Announces Policy Changes to Address Risk and Strengthen Finances

Hud posted a press release this morning, announcing more policy changes. These changes are aimed at strengthening FHA’s capital reserves while working to reduce risk. The announced FHA policy changes include:

1. Increased mortgage insurance premium (MIP)
2. Updated FICO scores and down payments
3. Reduced allowable seller concessions from 6% to 3%
4. Increased enforcement on FHA lenders

Read all the details in HUD’s press release.

With all the recent regulation changes, it can be frustrating trying to keep up. We are happy to answer your questions. Visit www.MortgageComplianceAdvisors.com or call 877-250-5243.

No Comments »
Jan
06
2010

Get the latest regulation news from our new website

Check out our newly redesigned website to find upcoming regulation deadlines, the latest compliance news, and other helpful resources.

Our new website is designed to be a helpful central location where you can find an abundance of frequently updated information for regulations from FHA, Fannie Mae, Freddie Mac, VA, the FTC, etc. Each deadline or resource is linked to the official regulation or form, so that you can read the exact wording.

Regulations continue to change, but Mortgage Compliance Advisors will help you comply.

No Comments »
Oct
01
2009

The Effects of HUD's Announcement from September 18, 2009

On September 18, 2009, HUD published a press release announcing numerous changes that are either proposed or already implemented, which affect FHA lenders and FHA loans. The most sweeping proposed change is that HUD/FHA will approve only Sponsor (investor, full eagle) lenders. FHA will then have the Sponsors approve the FHA brokers with whom they are willing to do business. Within one year, HUD intends to require an increase in the Sponsor’s net worth of $1,000,000 (increased from the present $250,000).

While the final rules are not yet in effect, it appears they will be implemented after a “notice and comment period.” Although these changes raise many questions which will require upcoming information from HUD/FHA, the following reflects our views on how this will affect lenders and brokers.

It is clear from the language of the press release that HUD is trying to make it easier for brokers to do FHA business, while at the same time putting more responsibility and accountability on both the broker and the Sponsor to make justified loans. HUD stated in the press release that “these lenders must have skin in the game,” which seems a clear indication that brokers and Sponsors will be held more accountable for loans produced than in the past.

Given the apparent intent of this new rule, it seems that the Sponsor will now be responsible to see that brokers are in compliance with the Quality Control expected by FHA, and presumably desired by the Sponsor. These Quality Control programs help ensure loans that comply with all regulations and laws, as well as minimize losses from bad loans. It is likely that even though the net worth requirements for brokers will be reduced or eliminated, Sponsors will continue to require Quality Control Plans and Quality Control audits in order to do business with them.

As HUD/FHA comes out with further announcements, we will keep you updated through our newsletter and social networks. Visit HUD’s website to read the entire press release from September 18, 2009.

Keeping up with changing regulations can be a daunting task. Mortgage Compliance Advisors offers lending manuals for FHA, VA, and HECM that are easy to use and updated quarterly. For more information, visit www.MortgageComplianceAdvisors.com or call 877-226-3152.

No Comments »




FHA Quality Control | Mortgage Compliance Services | Mortgage Compliance Resources