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Posts Tagged ‘mdia’

Jul
19
2011

Announcing New Webinar Series: Training Series and Free Series
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New Training Series of Webinars


We asked, “What is your biggest compliance challenge?” And many answered with a resounding, “Keeping up with the changes!” As it becomes harder to keep up with changing regulations, we recognized the need to offer you more specific trainings.


We are pleased to announce our new Training Series of webinars, to give you the detailed training you need.


We will also continue to offer our Free Series once or twice a quarter, where the webinars will be based on more broad overviews of compliance topics.
Training Series
July 28 at 1:00 pm MDT

TILA & MDIA Webinar

Get training to understand the latest TILA and MDIA requirements.

Cost: $25 per line

Register Now

Space is limited.

Reserve your Webinar Seat Now
Free Series
August 25 at 1:00 pm MDT

Learn post-audit agency requirements and what to do with your QC findings.

Cost: Free

Register Now

Space is limited.

Reserve your Webinar Seat Now

More about the webinars

TILA & MDIA – Register here

Are you struggling with TILA and MDIA issues? Get the training you need to better understand the latest requirements and ensure your compliance.* Join us for the first webinar in our Training Series as we discuss the Truth in Lending Act (TILA) and the Mortgage Disclosure Improvement Act (MDIA).

Join us for “TILA & MDIA” on Thursday, July 28 at 1:00 pm MDT (3:00 Eastern).

Get useful tips and resources as we discuss a high level overview of TILA and MDIA, including:

  • MDIA timing and definitions
  • Early and final disclosures
  • Other common questions and issues related to Truth in Lending
  • Q&A session to answer your questions

The webinar will run 30-45 minutes including about 15 minutes for your questions and answers.

HOW MUCH DOES IT COST?

This is the first webinar in our specially-designed Training Series, and costs just $25 per line. You are welcome to sign up one person at your office and then have multiple staff watch the webinar in a conference room.

WHO SHOULD ATTEND?

* This webinar is open to all mortgage compliance professionals who want more training about TILA & MDIA, and does not count toward CE points. Feel free to forward this registration link to your colleagues who also work in compliance/QC.

Title: TILA & MDIA – Register here 

Date: Thursday, July 28, 2011
Time: 1:00 PM - 1:45 PM MDT

After registering, you will receive a confirmation email containing information about joining the Webinar.

System Requirements
PC-based attendees
Required: Windows® 7, Vista, XP or 2003 Server

Macintosh®-based attendees
Required: Mac OS® X 10.4.11 (Tiger®) or newer

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QC Findings Are Done… Now What? – Register here

You have the report back from your QC audit, but now what are you supposed to do with the findings? Join us for a FREE webinar as we discuss what you’re required to do with your findings, and best practices your company should follow.

Join us for “QC Findings Are Done… Now What?” on Thursday, August 25 at 1:00 pm MDT (3:00 Eastern).

Learn what to do after your QC findings are completed, as we cover:

  • Agency requirements and best practices
  • Management reports and responses
  • Action plans
  • Trending
  • Q&A session to answer your questions

The webinar will run about 45 minutes to an hour.

HOW MUCH DOES IT COST?

This webinar is FREE.

WHO SHOULD ATTEND?

This FREE webinar is designed for mortgage compliance professionals. Feel free to forward this registration link to your colleagues who also work in compliance/QC.

Title: QC Findings Are Done…Now What? - Register here  

Date: Thursday, August 25, 2011
Time: 1:00 PM – 2:00 PM MDT

After registering, you will receive a confirmation email containing information about joining the Webinar.

System Requirements
PC-based attendees
Required: Windows® 7, Vista, XP or 2003 Server

Macintosh®-based attendees
Required: Mac OS® X 10.4.11 (Tiger®) or newer  

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Jul
12
2011

MCA Monthly Compliance Update – July 2011

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July palm trees picture from freestockphotos.biz

MCA Monthly Compliance Update

July 2011
In This Issue
Other Recent Announcements
Webinar Q&A
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Our Services

Pre-Funding Reviews

Identity Verification

TPO Management
Stay Updated
Connect with us:
View our profile on LinkedIn Follow us on Twitter Find us on Facebook
Join Our Mailing List!
Welcome to the MCA Monthly Compliance Update. To help you stay compliant and up-to-date, our newsletters contain mortgage compliance tips and updates.


We hope that you find the content informative and useful. As always, your feedback is appreciated.


New Training Series of Webinars


We asked many of you, “What is your biggest compliance challenge?” And the answer for many was a resounding, “Keeping up with the changes!” As regulations continue to change and it becomes harder to keep up, we recognized the need to offer you more specific trainings.

We are pleased to announce our new Training Series of webinars, to give you the detailed training you need. These webinars will be targeted and concise trainings, based on more specific compliance needs. Our Training Series webinars will be held once a month for 30-45 minutes and include about 15 minutes of Q&A. The Training Series webinars will be offered for a nominal fee. Our first one will be “TILA & MDIA” on July 21.

We will also continue to offer our Free Series once or twice a quarter, where the webinars will be based on more broad overviews of compliance topics. The next free webinar will be “QC Findings Are Done… Now What?” on August 25.


* Watch your inbox for an invitation to these webinars in the next few days.


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Get compliance updates right when they come out, on Twitter and Facebook.
Other Recent Announcements

Here are a few recent announcements that we thought you should know about:


Changes in Adverse Action Disclosure Requirements


On July 6, 2011, the Federal Reserve Board and the Federal Trade Commission issued rules that will change the adverse action disclosure requirements under Equal Credit Opportunity Act and the Fair Credit Reporting Act. The rule will be effective 30 days from the day the rule is published in the Federal Register.


Announcement on FederalReserve.gov


HUD’s Final Rule Regarding SAFE Act

On June 29, 2011, HUD published the final rule regarding the SAFE Act. The rule details HUD’s oversight responsibility over minimum requirements for state level SAFE Act implementation.


Final rule on OFR.gov
Webinar Questions & Answers

GFE Webinar Q&A


We want to thank everyone who attended our webinar: “GFE Compliance” in June. As promised, we have posted the slides and answers to questions asked.


We have included the first three questions below. *Please visit our website to read all 64 questions and answers.


Question 1 – Discounts are charged in the origination charge.  What happens if you have a borrower who agreed to a discount and then changes his mind?  If you cannot change the origination charge, how can you fix this?

  • Answer – If you are including the discount points in your origination charge then you are not allowed to change your origination charge. Discount points can be shown on Box 3 of Block 2 of the GFE. If discounts are listed here, you can change them as the rate changes.

Question 2 – RESPA states that Box 1 and 2 in Important Dates do not change.  Is this true?  If not, when does it change?

  • Answer – Question 1 in the Important Dates section will change when loan locking information changes. Question 2 in the Important Dates section will not change and will remain the same on all subsequent re-issues of the GFE.

Question 3 – If the seller is responsible for the transfer tax in our state, is it required to be disclosed on the GFE?

  • Answer - Please refer to RESPA FAQ (page 34 quesiton 2) Q: How is the transfer tax disclosed in Block 8 of the GFE?

    A: The amount the borrower is likely to pay for transfer taxes is disclosed in Block 8 of the GFE. In some areas this amount, as a matter of practice, is governed by state or local laws. If state or local law is unclear or does not specifically attribute transfer tax to a seller or borrower, the amount to be disclosed on the GFE is governed by common practice or experience in the locality of the property.

    If the seller is paying a portion of the transfer tax that was not disclosed on the GFE, then that portion should be listed in the seller’s column in the 1200 series on the HUD-1. …Read the rest of the questions and answers on our website.

HUD/FHA Update

ML 2011-20: Termination of the HOPE for Homeowners (H4H) Program


- Provides instructions on how to process cases during phasing out of HOPE for Homeowners (H4H) Program.



Letter on HUD.gov


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ML 2011-21: Revised Instructions for Preparing American Land Title Association (ALTA)/American Congress on Surveying and Mapping (ACSM) Land Title Survey for HUD Multifamily Housing Programs


- Revises instructions for preparing ALTA/ACSM Land Title Survey for Multifamily programs.


Letter on HUD.gov


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ML 2011-22: Condominium Approval Process for Single Family Housing – Consolidation and Update of Approval Requirements


- Updates requirements and procedures of Condominium Approval Process.


Letter on HUD.gov


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ML 2011-23: Unemployment Special Forbearance: Temporary Program Changes and Clarifications


- Temporarily amends Type I special forbearance program for unemployed borrowers.


Letter on HUD.gov


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To view all HUD Mortgagee Letters for the year, visit HUD’s website.
Fannie Mae Update


- Communicates expectations regarding max allowable time frame to complete foreclosure process, and imposition of compensatory fees.



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- Announces new servicer requirements to:
  • Simplify servicing process
  • Help servicers contact delinquent borrowers more effectively
  • Determine eligibility and offer foreclosure prevention alternatives


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- Describes policy changes to:

  • Servicing fees on modified mortgage loans
  • Clarification of mortgagee clause for loans registered with MERS



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- Announces that Fannie Mae foreclosures in Hawaii must be commenced as judicial foreclosures
- and all pending Fannie Mae non-judicial foreclosures in Hawaii that haven’t been proceeded to sale should be dismissed and converted to judicial foreclosures



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- Announces release of updated Servicing Guide.



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- Extends time period for servicers to request reimbursement for HOPE Hotline counseling.



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- Updates Fannie Mae’s policy on delinquency status reporting.



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- Reminds lenders to ensure that required mortgage insurance is maintained
- Provides new requirements for reporting notifications of mortgage insurance rescissions, mortgage insurer-initiated cancellations, and claim denials

- Confirms Fannie Mae’s repurchase policies, required timelines and remedies relating to representation and warranty violations



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- Updates Selling Guide, including:

  • Delayed financing exception
  • Removal of reverse mortgages
  • Misc. condo and co-op updates
  • Misc. Selling Guide updates
  • Updates to the Requirements for Document Custodians



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- Provides guidanceon servicer responsibilities regarding Emergency Homeowners’ Loan Program (EHLP).


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To view all Fannie Mae Announcements and Letters for the year, visit
Freddie Mac Update


- Announces Servicing Alignment Initiative

- Provides requirements to process foreclosures in Hawaii, due to recent Hawaii law changes



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

No recent VA circulars.

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To view VA Circular/News for 2010, visit the VA website.


This information has been taken from various public resources and does not constitute legal advice.

Feel free to call us with any questions at 877-226-3216 or reply to this email.

www.MortgageComplianceAdvisors.com
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Oct
28
2010

Answers to Questions from our Webinar “Managing the Year of Change”

We want to thank everyone who attended our webinar “Managing the Year of Change.” As promised, below you will find answers to the questions asked during the webinar. You can also download the slides below.

Our experts look forward to serving all your compliance needs. Call 877-250-5243 or email info@mortgagecomplianceadvisors.com.

QC Audits | QC Plans | Training & Consulting | TPO Management | Agency Approval | Red Flag Policies | Tax Transcripts & Social Security Verifications


Question 1 – You have stated that MDIA defines an application the same way as a GFE. So, you are saying that if we do not disclose a GFE because we do not have all of the pieces, then we do not have to issue the TIL either?

  • Answer – Yes. This is correct. TILA/MDIA shares RESPA’s definition of an application. If you do not have what is defined as an application then you are not required to disclose a TIL statement. This can be found in 12 CFR 226.19 for the Truth in Lending Act.



Question 2 – The Dodd 1 yr GFE and TIL combined implemented from what effective date?

  • Answer – The effective date is 1 year after transfer. That would be July 22, 2011. However, there is already a working copy going around, and I would expect it to be implemented well before this date.



Question 3 – I had a question related to the LO compensation that we discussed in webinar today. Changing LO compensation is a fairly easy regulation to comply with. It requires a change to the existing mind set, but logistically, it is not difficult. The requirement is to pay the LO based on total volume as a percentage or flat fee per until or some other method that doesn’t result in steering the borrower to an undesirable product.

Ok, so I’m with the regulators so far. Then, here is where I get lost. The regulation also says that companies that broker loans are also subject to the regulations. Ok, so now a brokerage firm or even a lender when acting as a broker also can not be paid differently for different pricing tiers or loan programs? So, effectively investors have to stop by brokerage firms how they are currently paying them. It is not simply paying the loan officer appropriately, but you also have to change the way you pay the firm. The interesting part is that secondary market transactions are exempt, so investors can still pay lenders but not brokers in spread premiums that change with loan program. So, it appears that the regulation much like RESPA is trying to put brokers at a competitive disadvantage. Am I understanding this correctly?

  • Answer – Yes, according to the rule, an originator is a loan originator and a broker company. Therefore, a broker company cannot be compensated based on the terms of the loan.



Question 4 – What is GSA and LDP?

  • Answer – GSA and LDP are lists compiled by the government that include individuals and companies that have violated certain rules, laws, or who have defaulted on an obligation. If a borrower or company is on either of these lists, then they would be excluded from receiving a loan in certain circumstances.



Question 5 – For an FHA loan, how do we handle where purchasing spouse is legal US resident with valid SS#, but non purchasing spouse is illegal with only an ITIN?

  • Answer – FHA does not allow a borrower with an ITIN. You will need to search out a different solution for this or not use the non-purchasing spouse in the approval.



Question 6 – It appears under the new LO compensation rules that take effect 04.01.2010 apply to mortgage broker companies and retail lender companies when their broker loans and not just to how the LO is paid.  Of course, secondary market exception applies to non-brokered rules but it appears that companies not just LO compensation cannot be paid differently based on the loan program. Therefore, it appears to make YSP or market price now illegal even if the LO is paid consistent with the rule.  So, investors are going to have to change the way they pay the broker companies as well is my understanding.

  • Answer – Yes, according to the rule, an originator is a loan originator and a broker company. Therefore, a broker company cannot be compensated based on the terms of the loan.



Question 7 – Can you say again where the handouts from the slideshow are on your website?



Have more questions? Submit your question in the comment box below.


Mortgage Compliance Advisors offers a free webinar every month. Visit www.MortgageComplianceAdvisors.com to register for next month’s webinar or to learn more about how MCA can serve all your compliance needs.

(Mortgage Compliance Advisors, LLC (MCA) makes reasonable efforts to ensure the accuracy of the answers. MCA makes no express or implied warranty of any kind respecting the information presented and assumes no responsibility for errors or omissions. This online chat is not legal advice and should not be used as a substitute for proper professional or legal advice.)

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Oct
06
2010

MCA Monthly Compliance Update – October 2010

MCA Logo

Picture of autumn leaves

MCA Monthly Update

October 2010
In This Issue
Webinar Q & A
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Quick Links

Lending Manuals
Stay Updated
Connect with us:

View our profile on LinkedIn Follow us on Twitter Find us on Facebook

Join Our Mailing List!

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

Join our free monthly webinar “Managing the Year of Change.”

We have posted the slides from last month’s webinar on our website. You can find slides from every webinar on our website under the News & Resources tab.


Webinar


A review of the  year’s major changes in the mortgage industry.

Join our free webinar on Thursday, October 21 at 12:00 p.m. MDT.





Reserve your webinar seat now at:


Register Now




As the mortgage industry continues to experience major reform, the year 2010 will forever be remembered as a year of change. To help lenders and brokers manage these implementations, Mortgage Compliance Advisors is pleased to offer a free webinar reviewing the major changes of the year. Last month’s webinar covered the GFE, and this month we will review other major changes of the year, including a panel discussion of the updates and an open Q&A session. Join us on Thursday, October 21 at 12:00 pm Mountain Daylight Time, as we discuss the following topics:


  • Fannie Mae changes (including LQI)
  • MDIA
  • FHA changes
  • Dodd-Frank Wall Street Reform and Consumer Protection Act (briefly)

If you send us your questions in advance, our compliance professionals will try to incorporate the answers into the presentation. Please submit your questions during the registration process or email info@mortgagecomplianceadvisors.com.


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For real time compliance news, you can now follow us on


Webinar Questions and Answers



We want to thank everyone who attended our webinar: “Revisiting the GFE: How to Resolve Common Findings.” As promised, we have posted the slides and answers to the questions asked.



We have included the first three questions below. *Please visit our website to read all 35 questions and answers.


Question 1 – On purchase transactions, since the seller chooses the title company, are title charges still held to that 10% tolerance?

  • Answer – Yes. Fees disclosed in Blocks #4 or #5 are bound by 10% tolerance. If a settlement service provider list is provided to the borrower at the time of initial GFE disclosure, and the borrower chooses a settlement agent not disclosed on the service provider list, the actual charges at settlement may be listed under Fees That Can Change.


Question 2 - Regarding Important Date #1: Does a new GFE need to be issued when a rate lock is extended?

  • Answer – A new GFE will need to be issued with the Important Dates Section updated to reflect correct lock information.


Question 3 – Is a credit report provider required to be on the settlement service list? If yes, what if you don’t charge your borrower a credit report fee ever? Do you still have to list a company on your list?

  • Answer – A settlement service provider list must be provided for any service the borrower may shop for. If the borrower is allowed to shop for a credit report provider, the list must be provided. If you do not ever charge a credit report, you are not required to show the credit report, or company, on the provider list.
HUD/FHA Update


Reminder: Multiple FHA changes went into effect on October 4, such as changes to

MIP, minimum credit score, and LTV eligibility requirements.


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- For Multifamily Mortgagees: Revises certain provisions of temporary authority to Multifamily Hub Directors to waive the Three-Year Rule for Section 223 (f) applications… View the entire letter


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- For Multifamily Mortgagees: Announces Annual Base City High Cost Percentages and High Cost Areas.  View the entire letter


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- For Multifamily Mortgagees: Implements several policy changes to Partial Payments of Claim (PPC) and Mortgage Modifications.  View the entire letter


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- Enhances FHA Connection to support Sponsored Originations. Effective October 4, 2010.  View the entire letter


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- Announces HECM Saver, with lower upfront costs for mortgagors who want to borrower smaller amount than would be available with HECM Standard.

- Also effective October 4, 2010, amount of HECM loan proceeds available to mortgagors will be reduced.



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To view all HUD Mortgagee Letters for the year, visit HUD’s website.
Fannie Mae Update



- Fannie Mae suspends California Housing Loan Insurance Fund (CaHLIF) as an approved mortgage insurer.  View the entire announcement


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- Fannie Mae is working with FHFA to develop and adopt appraiser independence requirements that will replace HVCC.  View the entire announcement


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- The Selling Guide is being updated to include changes to the following topics:

  • Simplified high-LTV ratio transactions and borrower contribution requirements
  • Updated employment and income policies
  • Revolving debts in debt-to-income ratio
  • Joint credit reports
  • Reporting and validation of mortgage insurance
  • Undisclosed liabilities
  • Updated foreclosure policies for DU loan casefiles
  • Miscellaneous Selling Guide Updates
  • Unit number special feature code and other updates

View the entire announcement


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SVC-2010-14: Home Affordable Modification Program: Introduction of Second Lien Modification Program


- Provides guidance on Second Lien Modification Program (2MP), which is designed to work in tandem with HAMP. Servicers must implement no later than January 1, 2011.  View the entire announcement



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SVC-2010-15: Updates to Fannie Mae’s Forbearance, Income Eligibility, and Home Affordable Modification Program Requirements


- Updates servicing guide regarding forbearance, income eligibility, and HAMP requirements.  View the entire announcement



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LL-2010-10: Extension to Fannie Mae’s Alternative Modification to the Home Affordable Modification Program


- Extends timeframe to November 30, 2010 for servicers to submit their Alt Mod cases.  View the entire letter



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LL-2010-11: Servicer Review of Procedures Relating to the Execution of Affidavits, Verifications, and Other Legal Documents


- Directs all servicers to immediately review policies related to execution of affidavits, verifications, and other legal documents connected with default process.  View the entire letter



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To view all Fannie Mae Announcements and Letters for the year, visit

Freddie Mac Update



- Extends settlement deadline for HAMP Backup Modifications to December 1, 2010.  View the entire bulletin


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- Updates Guide, including enhancements to fraud prevention, Exclusionary List, OFAC compliance, etc. View the entire bulletin


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- Announces that servicers must review affidavit policies related to foreclosure by October 18, 2010.  View the entire letter


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


VA Update



- Effective September 13, 2010, Loan Guaranty Service will temporarily relocate to Alexandria, VA. View the entire circular


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To view VA Circular/News for 2010, visit the VA website.

Feel free to call us with any questions at 877-226-3216 or reply to this email.

No Comments »
Aug
07
2009

MCA Monthly Update – August 2009

Welcome to the MCA Monthly Update. To help you stay compliant and up-to-date, each newsletter we send contains underwriting tips, processing tips, and compliance updates. Since there have been multiple recent regulation changes, this month’s newsletter focuses on compliance updates. Beginning with the next newsletter, in addition to the FHA update, we will be adding update sections for Fannie Mae and Freddie Mac. We hope that you find the content informative and useful. As always, your feedback is appreciated. If you have any questions, simply reply to this email or call us at 877-226-3216.

REGULATION Z REVISIONS IN EFFECT JULY 30, 2009

On July 30, the new Regulation Z changes for the Truth in Lending Act (TIL) became effective. As part of Regulation Z, the Mortgage Disclosure Improvement Act (MDIA) revised TIL requirements surrounding early and final disclosures to homebuyers, as well as discussing when fees are allowed to be collected. (Read the Federal Reserve Board’s press release at www.federalreserve.gov/newsevents/press/bcreg/20090508a.htm.)

A Few Highlights:
– Creditors must “give good faith estimates of mortgage loan costs (‘early disclosures’) within three business days after receiving a consumer’s application for a mortgage loan and before any fees are collected from the consumer, other than a reasonable fee for obtaining the consumer’s credit history.
– Creditors [must] wait seven business days after they provide the early disclosures before closing the loan
– Creditors [must] provide new disclosures with a revised annual percentage rate (APR), and wait an additional three business days before closing the loan, if a change occurs that makes the APR in the early disclosures inaccurate beyond a specified tolerance [.125%].”

UPDATE: DEADLINE FOR RED FLAGS RULE EXTENDED TO NOVEMBER 1

Last week the Federal Trade Commission announced a three month extension of the Red Flags Rule deadline. The FTC moved the deadline from August 1 to November 1, to give creditors and financial institutions more time to implement a written Identity Theft Prevention Program, also known as a Red Flag Policy. (For more information on this FTC requirement, see www.ftc.gov/opa/2009/07/redflag.shtm or contact us with questions.)

FHA UPDATE

HUD frequently publishes updates, known as Mortgagee Letters, containing new policies and other information for lenders. Since our last newsletter, HUD has published four additional letters. Below is a brief summary of all four:

• Home Equity Conversion Mortgage Refinancing of Existing Loans: Letter 09-21. This letter discusses a technical correction for the HECM program, and reiterates guidelines for refinancing HECM mortgages.

“FHA will insure all loans that were originated for the purpose of refinancing an assigned loan that is not in a due and payable status for reasons that cannot be corrected, such as death of the last mortgagor or conveyance of title by all mortgagors, but closed on or after October 6, 2008, the date of the Final Rule.” (Click here to view the entire letter.)

• Revised Temporary Authority for Multifamily Hubs to Process Waiver Requests Pertaining to the Three-Year Rule for Section 223(f) Apartments: Letter 09-22. This letter “rescinds and replaces ML 2009-06… [and] sets forth the Department’s revised policy to grant temporary authority to Multifamily Hub Directors to waive the Three-Year Rule for Section 223(f) applications, for the purpose of providing liquidity to recently constructed or substantially rehabilitated, self-sustaining properties that are unable to secure permanent long term financing due to the freeze in the capital markets…” (Click here to view the entire letter.)

• Making Home Affordable Program: FHA’s Home Affordable Modification Loss Mitigation Option: Letter 09-23. This letter “announces a new FHA Loss Mitigation option, the FHA-Home Affordable Modification Program (FHA-HAMP). FHA-HAMP will provide homeowners in default a greater opportunity to reduce their mortgage payments to a sustainable level. This Mortgagee Letter is effective August 15, 2009… FHA-HAMP can be utilized only if the mortgagor(s) does not qualify for current loss mitigation home retention options…”

A Few Highlights/Guidelines:
– Partial claim up to 30 percent of the unpaid principal balance as of the date of default combined with a loan modification
– Mortgagor must successfully complete a three month trial payment plan, making each scheduled payment on time.
– Servicer must obtain an executed Hardship Affidavit (available at https://www.hmpadmin.com/portal/docs/mod_docs/hamphardshipaffidavit.pdf) from every mortgagor and co-mortgagor seeking an FHA-HAMP
– Front end debt to income ratio must be as close as possible, but not less than, 31 percent
– Back end debt to income ratio must not exceed 55 percent
– Mortgagee may receive an incentive fee of up to $1,250 (Click here to view the entire letter.)

• Housing Tax Credit Coordination Act of 2008: Letter 09-24. This letter “describes the additional authority granted under HERA and the Department’s implementation of Sections 2832 and 2834 of the Act.

– Section 2832 of HERA requires the Secretary to implement administrative and procedural changes to expedite the approval of multifamily housing projects utilizing FHA mortgage insurance programs with either Low-Income Housing Tax Credits or tax-exempt housing bonds…
– Section 2834 of HERA provides three substantive changes to the Department’s processing of certain FHA mortgage insurance applications.” (Click here to view the entire letter and the details of all changes.)

To view all HUD Mortgagee Letters for the year, visit the official website www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm.

FANNIE MAE UPDATE (Coming next newsletter)

FREDDIE MAC UPDATE (Coming next newsletter)

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