Mortgage Compliance News: 2010 HUD Mortgagee Letters & Summaries

2010 Mortgagee Letters website

2010 HUD Mortgagee Letters & Summaries | MCA

ML 2010-43

Flood Zone Requirements for Federal Housing Administration (FHA) Insured Mortgages

  • Announces that FHA now requires flood zone determination on all properties
  • Prohibits FHA Mortgage Insurance for properties in designated coastal barriers

ML 2010-42

Federal Home Loan Bank – Affordable Housing Program, Homeownership Set-Aside Grant Program

  • Provides guidance on FHLB AHP Homeownership Set-Aside Program in conjunction with FHA financing.

ML 2010-41

Construction Specifications Institute (CSI), MasterFormat Editions

  • For Multifamily Mortgagees: The construction specifications template for FHA new construction and substantial rehabilitation projects has changed…

ML 2010-40

2011 FHA Maximum Loan Limits

  • Announces 2011 FHA single-family loan limits.

ML 2010-39

Home Equity Conversion Mortgage (HECM) – HUD-1 Settlement Statement Closing Certification

  • Introduces revised HECM – HUD-1 closing certification. For all HECM case numbers assigned on or after 12/1/10.

ML 2010-38

Mortgagee Eligibility Requirements and Clarification of FHA's Electronic Annual Certification Requirements and Procedures

  • Clarifies eligibility requirements for annual certification
    • Clarification of term "unresolved findings"
    • Definition of a corporate officer
    • Properly notifying HUD of business and address changes
    • Timeframes associated with criminal activity
    • Clarification of compliance with SAFE Act
    • Reminder of annual recertification requirements
    • Guidance on completing electronic annual certification
    • New info to mortgagees unable to certify

ML 2010-37

HECM Program: Clarification of Policies Regarding the Requirement that HECM Lenders Provide Prospective HECM Borrowers with a List of HECM Counseling Agencies

  • Clarifies HECM requirement to provide borrower with list of HECM counseling agencies.

ML 2010-36

Requirements for Combined Loan Amounts

  • Eliminates requirements that sum of all liens not exceed geographical max mortgage limit for both purchase and refinance transactions.

ML 2010-35

Borrower Certification for FHA Refinance of Borrowers in Negative Equity Positions

  • Announces that mortgagees must obtain signed certification form from borrower if underwater borrower is refinancing.

ML 2010-34

Home Equity Conversion Mortgage Program – Introducing HECM Saver; Mortgage Insurance Premiums and Principal Limit Factor Changes for HECM Standard

  • 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.

ML 2010-33

FHA Connection Enhancements to Support Sponsored Third Party Originations (Sponsored Originations)

  • Enhances FHA Connection to support Sponsored Originations, effective October 4, 2010.

ML 2010-32

Revision to Policy for Partial Payment of Claims and Mortgage Modifications

  • For Multifamily Mortgagees: Implements several policy changes to Partial Payments of Claim (PPC) and Mortgage Modifications.

ML 2010-31

Annual Base City High Cost Percentage and High Cost Area Revisions for 2010

  • For Multifamily Mortgagees: Announces Annual Base City High Cost Percentages and High Cost Areas.

ML 2010-30

Revised Temporary Authority for Multifamily Hubs to Process Waiver Requests Pertaining to the Three-Year Rule for Section 223(f) to Allow for Acquisitions

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

ML 2010-29

Minimum Credit Scores and Loan-to-Value Ratios

  • Introduces new minimum credit scores and LTV ratio requirements for FHA loans. Effective for case numbers assigned on or after October 4, 2010.

L 2010-28

Changes to FHA Mortgage Insurance Premiums

  • Raises annual FHA premium and lowers upfront premium, except for HECMs. Effective for case numbers assigned on or after October 4, 2010.

ML 2010-27

Renewal of Special Authority for Eligibility of Projects for Mortgage Insurance where Construction has Started…

  • For Multifamily Mortgagees: Renews policy for eligibility of projects where construction has started.

ML 2010-26

Further Policy Guidance to Defer Submission of Final Architectural Plans and Specifications Introduced by Mortgagee Letter 2008-19…

  • For Multifamily Mortgagees: Provides guidance on ML 08-19 regarding deferring submission of final architectural plans…

ML 2010-25

Processing Instructions for Refinancing Cooperative Housing Projects under Section 207 pursuant to Section 223(f)

  • Provides processing instructions and guidance to issue Mortgage Insurance for refinancing Cooperative Housing Projects under Section 207 pursuant to Section 223 (f) of the National Housing Act.

ML 2010-24

Combined Loan-to-Value Requirements for Refinance Transactions

  • Eliminates unlimited CLTV ratio and returns FHA to its former CLTV limit for case numbers assigned on or after September 7, 2010.

ML 2010-23

FHA Refinance of Borrowers in Negative Equity Positions

  • Provides guidance regarding enhancements to FHA's refinance program for underwater borrowers.

ML 10-22

Home Equity Conversion Mortgage (HECM) Program Submission of Case Binder Documents

  • Announces a new "Home Equity Conversion Mortgage Required Documents for Endorsement" list. Effective date for use is October 4, 2010.

ML 10-21

HUD Multifamily Risk Mitigation

  • Revises underwriting policies for FHA Multifamily programs.

ML 10-20

Implementation of Final Rule FR 5356-F-02…

  • Provides overview of key provisions and guidance on implementation of Final Rule.

ML 10-19

Streamline Refinance Transactions and FHA TOTAL Scorecard

  • Announces that lenders may score streamline refis through TOTAL and process, underwrite as streamline refi.

ML 10-18

Update of Property and Preservation (P&P) Requirements and Cost Reimbursement Procedures

  • Updates consolidated property and preservation (P&P) guidance for foreclosed properties that had been secured by FHA-insured mortgages.

ML 10-17

Updated HUD REO Lead-Based Paint Appraisal Reporting Requirements

  • Announces that HUD "will only order a lead-based paint evaluation for HUD REO properties constructed before 1978, and purchased with FHA-insured financing." Effective date June 1, 2010.

ML 10-16

Introduction of the M&M III Mortgagee Compliance Manager (MCM) and the P260 Internet Portal

  • Describes FHA's centralizing of mortgagee compliance under one contractor.

ML 10-15

FHA Case Number and FHA Roster Appraiser Assignments

  • Provides guidance on ordering FHA case numbers and selecting FHA Roster appraisers.

ML 10-14

Electronic Signatures on Third Party Documents

  • FHA will accept electronic signatures on third party documents.

ML 10-13

Appraisal Update and/or Completion Report (Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005)

  • Provides additional guidance on Appraisal Update Report.

ML 10-12

Use of pay.gov for Lender Approval Application Fees

  • Announces that those applying to become FHA lenders must submit application fees online.

ML 10-11

Availability of Treasury Success Payments for FHA-HAMP Modifications

  • Under certain conditions, servicers are eligible for Success Payments for FHA-HAMP mortgages.

ML 10-10

Revision to Criterion 4 of the Form HUD 92264-A, "Supplement to Project Analysis"

  • Revises Form HUD 92264-A, "Supplement to Project Analysis." It changes line “c” of Criterion 4 from “Site not Attributable to Dwelling Use” to “Warranted Price of Land.”

ML 10-09

Tier Ranking Scores – Incentive Round 38

  • Announces FHA servicing lenders' Tier Ranking Scores for Round 38.

ML 10-08

HUD REO Appraisal Validity Period and Second Appraisals

  • Announces that effective 4/1/10, HUD REO appraisals will be valid for 120 days. Also announces conditions for ordering second appraisal.

ML 10-07

Revisions to Model Home Equity Conversion Mortgage (HECM) Loan Agreement (Loan Agreement) and Fannie Mae Form 1009, Residential Application for Reverse Mortgages (Fannie Mae Form 1009)

  • Revises model HECM Loan Agreement (and exhibits) and Fannie Mae form 1009. Effective 8/1/10.

ML 10-06

Extension of Mortgagee Letter 2009-22 Revised Temporary Authority for Multifamily Hubs to Process Waiver Requests Pertaining to the Three-Year Rule for Section 223(f)

  • Extends deadline for temporary authority from ML 2009-22 to 2/17/2011.

ML 10-05

Announcement of the FHA Nonprofit Data Management System

  • FHA announces newly developed Nonprofit Data Management System (NPDMS).

ML 10-04

Loss Mitigation for Imminent Default

  • 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."

ML 10-03

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

  • Extends FHA's authority to terminate DE underwriting authority in areas where the lender has a high rate of early defaults and claims.

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.

ML 10-01

Extension of Authority for Processing Pre-application Firm Invitation and Firm Commitment Extension Requests

  • Extension of authority from ML 09-20 (processing pre-application extension requests).

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