FHA FAQs/HOT TOPICS
April 2010FHA FAQs/HOT TOPICS1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov1
PresentersCONNIE SCHOENWALDLAURA ARUNDELLINDA THOMPSONPAVLINA KUSNIERZ1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov2
sPropertyFHA ConnectionRefinancesReal Estate OwnedAdditional information1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov3
1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov4
CONTACT FHA1-800-CALLFHA (800-225-5342)Email: rold.h.mayer @hud.gov tosign up for HUD news andupdates including upcomingtrainings and webinars1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov5
OCCUPANCY4155.1HandbookSection 4.B1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov6
OCCUPANCY When may a borrower be consideredan owner occupant , obtain OwnerOccupied FHA Insured Financing andnot occupy subject property? May a Non Occupying CoBorrower ona Daughters FHA Insured loanpurchase or refinance a Primary homewith FHA Insured Financing?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov7
Non occupyingco-borrowerMay a parent selling home to a child also coborrow with the child on the FHA InsuredLoan?YES, HOWEVER, THE LTV IS LIMITED TO 75%HANDBOOK 4155.1, 2.B.3.b1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov8
BELIEVE IT OR NOTBorrowers own a current home with FHAFinancing and intend to purchase a newprimary home with FHA Insured Financing .Borrowers will retain their current home.Lender has determined borrowers meet theexception for 2 FHA Insured FinancedHomes due to increase in Family size as theBorrowers state they need a larger homeand yard due to a new family dog.WHAT DO YOU THINK?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov9
Income/employment4155.1 HandbookSections 4.D, 4.E, 4.F1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov10
Believe it or notThe Borrower owns a Rental Homeand has provided his parent’s tax returnto evidence the rental income on theproperty. The income is not disclosedon the borrowers tax return.WOULD YOU ALLOW THIS INCOME?FHA - Serving Home Buyers Since 1934www.hud.gov11
INCOME Community Property State; NonPurchasing Spouse shows a loss onSchedule C. The Lender DID NOTcount the loss as a reduction toincome nor as a debt.What would you do?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov12
INCOME TRUE OR FALSE:Borrower is self employed. Last 2 years taxreturns show a significant decline inincome from one year to the next .Borrower qualifies with a 12 monthaverage of the lesser , most recent taxreturn . lender elects to use this incomeand qualify loan. May lender use thisincome to qualify?See 4155.1, 4.D.4.g1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov13
INCOME Unremibursed Employee Business expensesfrom Schedule 2106 must be deductedfrom borrowers income. If borrower is receiving an automobileallowance, the difference between theautomobile allowance and the 2106Expense may be added to income if positiveOR must be treated as liability if negative. In addition, the borrowers auto loanpayment must be counted as a debt and maynot be offset by the AutomobileAllowance.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov14
INCOMEHANDBOOK 4155.14.E.5.bDID YOUKNOW THATTHESEINCOMETYPES MAYBE GROSSEDUP IF NONTAXABLE?1-800-CALL FHAServicing the American HomebuyerSince w.hud.gov15
Rental IncomeBorrower is vacating his current home topurchase a new home within the samecommuting distance to his employment.Borrower will retain and lease outcurrent home and requests that the rentalincome be considered in qualification.Lender has provided borrowers HUD I toevidence original purchase price ofvacating home to be 130,000. The existingloan on vacating property is 103,000.DOES RENTAL INCOME MEET FHAGUIDELINES?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov16
EMPLOYMENTBorrower has a job gap of 4 .5 years due tohusband in the military and moving fromplace to place during that time. Borrowerhas now returned to the work force andhas been on the job for 1 month.WOULD FHA ALLOW THE USE OFBORROWERS INCOME IN QUALIFICATION?AND WHAT WOULD THE LENDER WANT TOVERIFY IN ORDER TO USE THE INCOME?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov17
Credit4155.1 HandbookSection 4.C1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov18
Traditional credit True or False: All loans must receiveapprove/eligible AUS findings in order tobe eligible for FHA Insurance. True or False: Loan is eligible for FHAInsurance when the Occupant Borrowerhas acceptable credit and FICO score, buthas no employment, income or assets. Nonoccupying Coborrower has sufficientincome and assets and the loan receives anAUS Approve/Eligible. See ML 08-111-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov19
Traditional credit True or False: AUS Approve/Eligible. Exspouse has beenawarded a prior home and mortgage. Copy of divorceDecree has been provided evidencing such. Prior mortgageshows 2x30 days late in most recent 12 months. May theLender omit Prior Mortgage Debt? SEE ML 04-47 ANDFHA TOTAL SCORECARD USER GUIDE. True or False: Borrower with a Property MortgageIncluded and Discharged through a bankruptcy is eligiblefor FHA financing two years after the bankruptcy.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov20
Traditional credit In order to omit contingent Liability, the personmaking the payments must be co-obligated on thedebt:a) Mother making borrower’s automobile loanpayment, is a Co-borrower on the debt and hasprovided 12 months cancelled checks evidencingmother has made this payment. This would beeligible for omissionb) Father making borrower’s student loanpayment, is NOT a Co- borrower on the loan and hasprovided 12 months cancelled checks. This wouldNOT be eligible for omission.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov21
LIABILITIESSomething else to keep in mind is a liabilitybeing paid by a borrowers Schedule CBusiness. A Schedule C business is a SoleProprietor business which means that theborrower is solely and individuallyresponsible for all income, expenses anddebt. The business itself would not be coobligated on the debt and thus, thisliability would not be considered acontingent liability. The liability must becounted in qualification of borrower.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov22
Traditional credit True or False: All FHA Insured Loansmust be run through FHA TotalScorecard to be eligible for FHAInsurance. True or False: Borrowers who haveentered into a Consumer CreditCounseling Program Must have completedthe program a minimum of 2 years prior toloan application.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov23
Traditional creditOMISSION OF DEBT1) Lender should not automatically omitdebt.2) documentation to support omission ofdebt required.3) FHA Total Scorecard may not analyze theomitted debt in the overall Underwritingreview.4) Debts with less than 10 paymentsremaining should be included5) Allow Total Scorecard to omit theallowable debt.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov24
MANUAL DOWNGRADEFHA TotalScoreCard UserGuide may befound inMortgagee Letter04-47. The Guidereferencescircumstanceswhen a loan mustbe manuallydowngraded:1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov25
MANUAL DOWNGRADE1) Outstanding Delinquent Federal Debt2) CAIVRS indicates a federal delinquency,default, claim or lien.3) Suspended and Debarred Individuals4) Previous Mortgage Foreclosure within mostrecent 3 years.5) Previous Bankruptcy within most previous 2years.6) Late Mortgage payments in excess of 2X30 dayslate.7) Disputed accounts, regardless of disposition ofaccount.8) Short sale or short payoff1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov26
MANUAL DOWNGRADEIn Addition, When a lender isnot able to document thecasefile per the AUS/FHATotal Scorecard Findings,the loan must be downgradedto Refer and ManuallyUnderwritten1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov27
NON TRADITIONAL CREDIT Borrowers with no credit (including no FICOScore) or insufficient credit may be approvedusing non traditional credit guidelinesoutlined in Handbook 4155.1, 1.7.A and 4.C.3.3 Nontraditional Trades should be provided Occupying Borrowers with insufficientcredit must meet 31%/43% DTI Ratios and 2months cash reserves1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov28
NON PURCHASING SPOUSE When would you require a creditreport for a non purchasing spouse? Is a Credit report required for thenon purchasing spouse when the nonpurchasing spouse does not have aSSN?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov29
NON PURCHASING SPOUSETrue or False:All non purchasing spousejudgments and Federaldelinquent debt must bepaid in full prior toclosing.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov30
MISCELLANEOUS1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov31
IDENTITY OF INTEREST4155.1 Handbook, Section 2.B.2An Identity of InterestTransaction is defined asa Purchase Transactionbetween a buyer andseller with a family orbusiness type relationship1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov32
IDENTITY OF INTERESTThere are several exceptions that may begranted to allow maximum financing forIdentity of Interest Transactions: Family Member Purchase: InvolvesTransactions between Family Members definedas grandparent, parent, child, grandchildand/or spouse when Family Member is sellingtheir primary residence. May also includeproperties being sold by an estate of the familymember that can be documented as the primaryresidence of the deceased party within areasonable amount of time. NOTE THAT FAMILYMEMBER IS DEFINED VERY SPECIFICALLY INTHE GLOSSARY OF THE 4155.1 HANDBOOK(CHAPTER 9) AND WOULD NOT INCLUDECOUSINS, FRIENDS, AUNTS, UNCLES, ETC.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov33
IDENTITY OF INTERESTOther Exceptions for maximum financinginclude: Builders employee Purchase Tenant Purchase: Occurs when buyer is leasingfrom family or business relation and hasoccupied property for a minimum of 6 months.NOTE THAT THE TENANT LANDLORDRELATIONSHIP ITSELF DOES NOT MAKE THETRANSACTION AN IDENTITY OF INTERESTTRANSACTION. Corporate Transfer1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov34
Lender insuranceFor those lenders that insure/endorse theirown loans the following references may behelpful: Lender Insurance Guide may be found on hud.gov (usesearch feature to locate appropriate web page) Thisguide explains the requirements Lenders must meet toinsure/endorse own loans. Handbook 4155.2, Section 2.C Mortgagee Letter 05-361-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov35
Lender insurance THE ORIGINATION STAFF OF THE LENDER (I.E., LOANORIGINATOR, PROCESSOR, UNDERWRITER, ETC) MAYNOT INSURE/ENDORSE THE FHA CASE. THE SHIPPER,CLOSER, RECEPTIONIST, ETC. MAY INSURE/ENDORSETHE LENDERS CASES. IF A LENDER MAKES A MISTAKE (LOAN AMOUNTS,ADDRESS, CLOSING DATE, ETC) WHENINSURING/ENDORSING A CASE, THEY MUST SUBMITFOR AN MIC (MORTGAGE INSURANCE CERTIFICATE)CORRECTION THROUGH THE APPROPRIATEHOMEOWNERSHIP CENTER. THIS PROCESS MAY TAKEUP TO 90 – 120 DAYS.1-800-Call FHAwww.hud.gov36
Funds for closingThe borrower, as a licensed real estateagent, wishes to use his commission fromsubject property sale for funds to closethe purchase transaction. Underwriterconditions for evidence of amount ofcommission borrower will receive fromsubject purchase transaction andevidence that credit for this commissionappears on page 1 of the HUD I.IS THIS ACCEPTABLE TO FHA?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov37
property1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov38
NEW CONSTRUCTION4155.1 Handbook, Section 2.B.5 TRUE OR FALSE: PROPERTIES LESS THAN ONE YEAROLD MAY BE PROCESSED AS A RATE/TERM, NOCASH OUT REFINANCE, AS LONG AS BORROWERCURRENTLY OWNS LAND. TRUE OR FALSE: BORROWERS MAY RECEIVE CASHBACK AT CLOSING WHEN PROCESSING A BUILD ONOWN LAND TRANSACTION. TRUE OR FALSE: BORROWER MAY ACT AS HIS OWNGENERAL CONTRACTOR ON A BUILD ON OWN LANDTRANSACTION.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov39
NEW CONSTRUCTIONMortgagee Letter 2009-16contains the worksheet thatshould be used in determining maximum loanamount for all Build On Own LandTransactions. The maximum loan amount isdetermined by the lesser of the acquisitioncost OR appraised value OR existingindebtedness (i.e., Construction Loan)1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov40
NEW CONSTRUCTIONDocumentation: Builder Certification HUD Form 92541 must be datedand provided by builder prior to date of appraisal forall transactions when subject property is less than 1year old. Appraiser is required to review BuilderCertification prior to completion of appraisal. If the appraisal is completed as proposed or underconstruction, the Final inspection (HUD Form 92051)must be completed by an FHA FEE INSPECTOR alongwith the 10 Year Warranty OR must Provide BuildingPermit and Certificate of Occupancy for all newlyconstructed properties less than 1 year old.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov41
NEW CONSTRUCTION Does FHA allow an equivalent documentof a Certificate of Occupancy (C.O.)? (i.e.,when the local jurisdiction does not issuea Certificate of Occupancy)1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov42
SUBSEQUENT PURCHASE1) Builder Defaults on aproperty less than 1 yearold and bank forecloses.1) Bank sells to subject borrower whoapplies for FHA Insured Loan.2) New Construction Documents are notrequired for a subsequent purchase.3) Lender must provide evidence property iscomplete via Appraisal, Certificateof Occupancy or Compliance Inspection92051 provided by a Fee Inspector.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov43
NEW CONSTRUCTION DOCUMENTSThe newconstructiondocumentationrequirementshave beenprovided as anattachment toyour invitationto this webinar1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov44
APPRAISALBorrower Purchased Property 2/28/2009.Borrower has decided to refinance hisloan 8/1/2009 and Requests the newLender to utilize the appraisal that wasperformed for his purchase transaction &effective 2/20/2009. Refinance loan willclose 8/15/2009. Lender agrees to usethis appraisal as it is less than 6 monthsold.Is this acceptable for fha guides?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov45
PROPERTY REPAIRSHandbook 4155.1, 2.A.5.aRepairs and improvements, asrequired by the appraiser asessential for propertyeligibility , and to be paid byborrower, may be added to thesales price before calculatingthe mortgage amount for allFHA transactions.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov46
PROPERTY REPAIRS(CONTINUED)The amount that may be added to the salesprice before calculating the maximummortgage amount is the LESSER of:1) The amount the value of the propertyexceeds the sales price OR2) The Appraiser’s estimate of repairs andimprovements OR3) The amount of the Contractor’s bid1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov47
HOME INSPECTIONSIf the borrower has a home inspectionperformed, that inspection may alsoindentify a need for repairs which were notidentified on the appraisal. In such cases, itis important that the Underwriter addresssuch issues and determine that propertystill meets FHA minimum propertyrequirementsAPPRAISAL1-800-CALL FHAServicing the American HomebuyerSince 1934HOMEINSPECTIONwww.hud.gov48
203kThe 203k loan is HUD’s rehab program Ability to market properties that needupdating or repair Increasing a property’s value and improveappearance Increase the functionality and comfort ofa borrower’s home1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov49
203(k) vs. 203(k) streamline203(k)203(k) streamline Repairs/improvementsmust be at least 5000 Consultant required Architectural exhibitsrequired Borrower can dorepairs/improvementsif qualified Facilitate uncomplicatedrepairs/improvements No consultant required No architect required Borrower can dorepairs/improvements ifqualified Include up to 35,000 ML 2000-25 ML 2005-501-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov50
203(k) and 203(k) streamline(continued) Is there a minimum amount of bids aborrower needs to provide for therepairs? NO Are the 203(k) programs allowed oninvestment homes? NO Are the 203(k) programs limited to singlefamily properties? NO Does a lender have to have specialapproval to underwrite 203(k) loans? NO Can a pool be installed with the 203(k)programs? NO1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov51
To access the 203k worksheetVisit the link referenced x.cfm1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov52
To access information for the 203(k)and 203(ks) programsVisit the link referenced enu.cfm1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov53
FHA CONNECTION1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov54
FHAC Main Page1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov55
FHAC Resources1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov56
Fhac message board1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov57
Fhac message board cont1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov58
Social security validation Changes to fha connection October 2007 Name, birth date and social securitynumber must match Social securityAdministration If failing validation, lender must provide anacceptable 3rd party verification with aservice provider with direct access to thesocial security administration1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov59
Case numbers a lender can hold a case number fromtransfer to another lender, if theborrower has not paid for the currentappraisal? True or false My loan closed using fha Insuredfinancing, but the loan was not insured.Can I re-use the case number on my newrefinance? A case number can be cancelled if theprevious lender is refusing to transfer thecase number? True or false1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov60
Case Number Cont1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov61
Case numbers contADP Codes 703-mutual Mortgage 729-adjustable rate mortgage 702-203(k) 951-Home Equity Conversion Mtg (fixed) 807-Energy Efficiency Mortgage /f17c/f17adphist xmlhlp.cfm1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov62
Appraisal Logging Appraisal logging should be completedupon lender’s receipt of appraisal Need to complete prior sales price onforeclosures The appraisal cannot have an effectivedate more than 10 days prior to the caseassignment date1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov63
Case warningsWhat do the following case warnings mean? Mortgage credit rejectmortgage credit sanction/caivrsMultiple loansFree form comments exist1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov64
Insurance application I have a final aus approvedrecommendation, but when we’ve tried toinsure the loan, it gives me an error “casewarning total case rescored as refer,manual underwriting required”. What doesthis mean? I am getting an error on the maximummortgage for a streamline refinance withan appraisal. It is calculating the mortgageamount on the unpaid principal balanceplus closing costs. Where do I enter theinterest and prepaid expenses?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov65
Insurance application I have an error that I owe more on theUFMIP than what was submitted. What do Ineed do? The loan amount was miscalculated and isover insured. What do I need to do? I have an error that the UFMIP wasremitted prior to the loan closing. Whatdo I need to do?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov66
Refinances4155.1-chapter 3and chapter 61-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov67
Refinance-sections of 4155.11-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov68
Rate/term refinance can you include past due real estate taxes inexisting debt calculation for the maximummortgage amount? borrower has a line of credit on their home andit’s the only existing debt. Does the 1000 advancein the last 12 months apply? If there is a divorce, can a property be refinancedwith an fha insured mortgage and used to buy outthe ex-spouse’s equity in the home? Do judgments on title qualify as seasoned liens tobe paid with a rate/term refinance?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov69
Rate/term refinance Can a borrower pay down/modify acurrent 2nd subordinate mortgage? The maximum mortgage can be calculatedso the borrower receives 500 atclosing? Can you add a Non-Occupying Co-Borrowerto a rate/term refinance?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov70
Cash out refinance Why does fha not allow for a nonoccupying co-borrower on a cash outtransaction? If a borrower had a nonoccupying co-borrower or co-signer ontheir purchase transaction, can theyremain on the new cash out refinance Can a borrower have a 1x30 late in thelast 12 months on an 85% cash outrefinance?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov71
Cash out refinanceA borrower has owned a property for 3years and has been renting it out for thelast 2 ½ years. The borrower has sincerecently moved back into the property 7months ago.Can the borrower do a cash out refinanceon this property?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov72
Streamline refinances Am I required to verify assets if myborrower needs funds to close on theirstreamline refinance? Is there a seasoning requirement when aborrower can refinance? How do I calculate the net tangible benefitwhen the borrower’s taxes are increasing?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov73
Real estate owned1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov74
1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov75
Real estate owned Can a borrower have a non-occupying coborrower or co-signer on a 100 downloan or a good neighbor next door loan? How do you calculate the maximummortgage for a 100 down loan? What PROPERTIES ARE ELIGIBLE FOR A 100 DOWN PROGRAM? Is there a maximum dollar amount that areo property is insurable with a repairescrow? Do I always need to use the appraisalcompleted by the M&M contractor?1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov76
Additionalinformation1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov77
Most commonMortgagee lettersML 2010-02ML 2009-53ML 2009-52ML2009-46A&BML 2009-32ML 2009-30ML 2009-29ML 2009-161-800-CALL FHAML 2009-08ML 2008-40ML 2008-25ML 2008-22ML 2008-11ML 2005-50ML 2000-27ML 2000-25Servicing the American HomebuyerSince 1934www.hud.gov78
New updates09-28: Mortgage Brokers and Commission-basedlender staff may no longer order FHA appraisalseffective with case assignments 2/15/10.09-29: Lenders must transfer appraisals with casenumbers when requested by borrower and assurethat all appraisal information is accurately inputinto the Appraisal Logging Screen in FHAConnection.09-30: Validity period for appraisals has beenchanged to 120 days for all case assignmentseffective January 1, 20101-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov79
New updates09-51: Adoption of 1004D/442 Appraisal Update andCompletion Report to extend appraisal validity periodand serve as final inspection for existing properties.Effective with case assignment 2/15/10.09-53: New RESPA Guides. New GFE and HUD I SettlementStatements are required for mortgages originated on orafter January 1, 2010.10-08: validity period for appraisals on hud reo propertieshas been changed to 120 days for all case assignmentseffective april 1, 2010 . Reo Second appraisals tosupport a higher purchase price.10-13: Additional guidance to 1004D/442 Appraisal Updateand Completion Report1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov80
New updatesFLIPPING WAIVER FROM FEBRUARY 1, 2010TO FEBRUARY 1, 2011:Waiver of Requirements of 24CFR203.37a(b)(2) Pursuant to 42 USC at3535(q)) and 24 CFR ip2010.pdf1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov81
FLIPPING WAIVER Effective 2/1/2010 to 2/1/2011 Seller holds title for less than 90 daysacceptable. Lender must document seller’s acquisitionprice Subject sales price exceeding seller’sAcquisition Price by 20% or more requireslenders justification of increase in valueand property inspection.1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov82
New updates10-02: UFMIP will increase to2.25% effective with caseassignments on or afterApril 5, 20101-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov83
Referenceshud.gov offers a search feature so thatlenders may access: all Handbooks Mortgagee Letters HOC Reference Guides All approval lists such Acceptable TenYear Warranty Plans for NewConstruction, Termite States, Non ProfitOrganizations, etc. Upcoming Trainings, Webinars1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov84
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FHA Resource Center1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov92
THANK YOU!PLEASE COMPLETE THEEVALUATION POLL1-800-CALL FHAServicing the American HomebuyerSince 1934www.hud.gov93
True or False: All FHA Insured Loans must be run through FHA Total Scorecard to be eligible for FHA Insurance. True or False: Borrowers who have entered into a Consumer Credit Counseling Program Must have completed the program a minimum of 2 years prior to loan application. 1-800-CALL FHA Servicing the American Homebuyer Since 1934
FHA Connection Guide FHA Connection Training Resources FHA Connection Training Resources This FHA Connection Guide module describes the FHA Connection's many training, information, and user assistance resources. Table 1: FHA Connection Training and Information Resources lists each title and gives a brief summary of its contents.
HUD requires that lenders use an FHA-registered underwriter to review and certify mortgage origination documents for compliance with the requirements of the FHA's mortgage insurance program. Use Underwriter Registry to add, change, or terminate underwriters registered with the FHA that are employed by your lending institution.
FHA Connection Registration: If you do not have an FHA Connection user ID, see the FHA Connection Guidemodule: FHA Connection Registration Procedures for instructions on how to apply for and receive a user ID (you may also find the other modules in the Getting Startedportion of the FHA Connection Guidehelpful).
The existing loan is not required to be FHA insured. Loan is fully credit qualifying with appraisal. Impac’s FHA Simple Refinance program is a no cash-out refinance of an existing FHA-insured mortgage in which all proceeds are used to pay the existing FHA-insured mortgage lien on the subject property and costs associated with the transaction.File Size: 849KB
7150,7200,7202,7250,7252,7300,7302,JUM7300,JUM7302 FHA Fixed Rate with Jumbo Addendum Page 1 of 27 For Correspondent Lenders Only. FHA Fixed Rate with Jumbo Addendum . General Description: FHA Fixed Rate principal and interest level payments for the life of the loan. Follow published FHA guidelines if item not addressed below.
and FHA staff. The FHA Catalyst: Single Family Default Monitoring System (SFDMS) enables real-time case status updates and creates a modernized experience through automation. FHA Catalyst: SFDMS Mortgagee Guide This document has been developed to provide users with guidance how to use the FHA Catalyst: Single Family Default Monitoring System .
Updated: 10/2019 FHA Connection Registration Procedures - 2 FHA Connection Guide FHA Connection Registration Procedures 2. The table on the Registering to Use the FHA Connection page (Figure 2) organizes registration forms and their related information by Type of User.The Registration column associated with each Type of User provides registration information and links to the appropriate forms.
Thermal system engineering is not usually thought of as a first rank engineering discipline as Mechanical, Civil, Electrical and Chemical Engineering, and it is usually ascribed to the leading one (like Aerospace, Naval, and Automotive Engineering) because the paradigmatic thermal systems has always been the heat engine, but its importance pervades all other branches (e.g. thermal control .
