Mortgage Compliance News: 2010 HUD Mortgagee Letters & Summaries
2010 Mortgagee Letters website
- Announces that FHA now requires flood zone determination on all properties
- Prohibits FHA Mortgage Insurance for properties in designated coastal barriers
- Provides guidance on FHLB AHP Homeownership Set-Aside Program in conjunction with FHA financing.
- For Multifamily Mortgagees: The construction specifications template for FHA new construction and substantial rehabilitation projects has changed…
- Announces 2011 FHA single-family loan limits.
- Introduces revised HECM – HUD-1 closing certification. For all HECM case numbers assigned on or after 12/1/10.
- 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
- Clarifies HECM requirement to provide borrower with list of HECM counseling agencies.
- Eliminates requirements that sum of all liens not exceed geographical max mortgage limit for both purchase and refinance transactions.
- Announces that mortgagees must obtain signed certification form from borrower if underwater borrower is refinancing.
- 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.
- Enhances FHA Connection to support Sponsored Originations, effective October 4, 2010.
- For Multifamily Mortgagees: Implements several policy changes to Partial Payments of Claim (PPC) and Mortgage Modifications.
- For Multifamily Mortgagees: Announces Annual Base City High Cost Percentages and High Cost Areas.
- For Multifamily Mortgagees: Revises certain provisions of temporary authority to Multifamily Hub Directors to waive the Three-Year Rule for Section 223 (f) applications…
- Introduces new minimum credit scores and LTV ratio requirements for FHA loans. Effective for case numbers assigned on or after October 4, 2010.
- Raises annual FHA premium and lowers upfront premium, except for HECMs. Effective for case numbers assigned on or after October 4, 2010.
- For Multifamily Mortgagees: Renews policy for eligibility of projects where construction has started.
- For Multifamily Mortgagees: Provides guidance on ML 08-19 regarding deferring submission of final architectural plans…
- 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.
- Eliminates unlimited CLTV ratio and returns FHA to its former CLTV limit for case numbers assigned on or after September 7, 2010.
- Provides guidance regarding enhancements to FHA's refinance program for underwater borrowers.
- Announces a new "Home Equity Conversion Mortgage Required Documents for Endorsement" list. Effective date for use is October 4, 2010.
- Revises underwriting policies for FHA Multifamily programs.
- Provides overview of key provisions and guidance on implementation of Final Rule.
- Announces that lenders may score streamline refis through TOTAL and process, underwrite as streamline refi.
- Updates consolidated property and preservation (P&P) guidance for foreclosed properties that had been secured by FHA-insured mortgages.
- 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.
- Describes FHA's centralizing of mortgagee compliance under one contractor.
- Provides guidance on ordering FHA case numbers and selecting FHA Roster appraisers.
- FHA will accept electronic signatures on third party documents.
- Provides additional guidance on Appraisal Update Report.
- Announces that those applying to become FHA lenders must submit application fees online.
- Under certain conditions, servicers are eligible for Success Payments for FHA-HAMP mortgages.
- 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.”
- Announces FHA servicing lenders' Tier Ranking Scores for Round 38.
- Announces that effective 4/1/10, HUD REO appraisals will be valid for 120 days. Also announces conditions for ordering second appraisal.
- Revises model HECM Loan Agreement (and exhibits) and Fannie Mae form 1009. Effective 8/1/10.
- Extends deadline for temporary authority from ML 2009-22 to 2/17/2011.
- FHA announces newly developed Nonprofit Data Management System (NPDMS).
- 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."
- Extends FHA's authority to terminate DE underwriting authority in areas where the lender has a high rate of early defaults and claims.
- Increases mortgage insurance premium to 2.25%. Effective for case numbers assigned on or after April 5, 2010.
- Extension of authority from ML 09-20 (processing pre-application extension requests).
Contact us to learn more about our mortgage compliance services and solutions
<< Return to News