| FHA Releases Online Versions of FHA Handbooks 4155.1 (Mortgage Credit Analysis) and 4155.2 (Guide to Single Family Mortgage Insurance Processing) - (Effective April 9, 2009) — May 2009
It’s about time—but there’s a WARNING: The new handbooks incorporate changes from mortgagee letters through 12/08. But for now, be aware that as of May 7, 2009 the “trial” version of the handbook has not been updated to reflect 2009 changes.
(FHA Mortgagee Letter 2009-14, April 9, 2009)
Supporting Resources:
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| FHA Foreclosure Fix-Ups & 203k Streamlines - Is it a good fit for your business? — May 2009
I want to be clear from the start. I am a huge advocate of the 203K FHA Streamline program and have seen firsthand how well it can work. It can be a fantastic niche to advertise to Realtors, IF it’s a good fit for the originator and the client. This program allows you to add up to $35,000 to their loan amount.
Supporting Resources:
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| FHA Home Equity Conversion Mortgage Program: Clarification of Counseling Issues (Effective March 27, 2009) — May 2009
HUD ‘s not happy that borrowers are being pressured by lenders into pursuing the HECM, especially since the borrowers are older and possibly more susceptible to unscrupulous tactics.
(FHA Mortgagee Letter 1009-10, March 27, 2009)
Supporting Resources:
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| FHA HECM for Purchase Program: Guidelines Clarified (Effective March 27, 2009) — May 2009
This is a summary of everything that is different from the original ML 2008-33. If you have anything to do with purchase HECMs you will want to print out this new ML and the attachment and keep it for reference. It is your only guideline reference specific to purchase HECMs.
(FHA Mortgagee Letter 2009-11, March 27, 2009)
Supporting Resources:
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| FHA Market Condition Addendum (1004MC) to Determine Declining Markets. Mortgage Talking PointsTM flyer "What the New Market Condition Appraisal is All About" (Effective April 1, 2009) — April 2009
For FHA purposes, the MC Addendum findings determine whether or not the property is in a declining market. Additional time is required to complete this form and most appraisers are going to raise their fees. The appraisers I’ve talked to are saying an additional $50-$75. You will need to re-disclose!
(FHA Mortgagee Letter 2009-09, March 23, 2009)
Supporting Resources:
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| FHA Limits - Cash-out Refinance - 85% Maximum LTV is back! (Effective April 1, 2009) — April 2009
Wave goodbye…they’re really gone. No more 95% cash-out refis. A quick note on 3 and 4 unit properties: An 85% loan amount may not be allowable if the new payment doesn’t pass the self-sufficiency test.
(FHA Mortgagee Letter 2009-08, March 12, 2009)
Supporting Resources:
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| FHA Re-Establishes Monitoring of Mortgagees (SWAT) (Effective April 2, 2009) — April 2009
HUD establishes a SWAT team to monitor excessive defaults (by lender). Is your Quality Control Plan up to date? We hope HUD will continue to put some punch behind their policies so that the bad apple lenders don’t take us all down.
(FHA Mortgage Letter 2009-12, April 2, 2009)
Supporting Resources:
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| FHA Loan Limits for 2009 - Back to Where We Started - With a Big Kicker for HECMs! (Effective 1-1-09 to 12-31-09) — March 2009
Higher limits are great news. However, the process is a pain. It depends on the date the case number was issued and comparing which loan amounts were higher (2008 or 2009). And then there’s the HECM Loan Limits – HECM Loan Originators have gotta’ be dancin’ in the streets right now! (County Loan Limit Chart Included)
(FHA Mortgagee Letter 2009-07, February 24, 2009)
Supporting Resources:
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| How to Become an FHA Approved Lender - Checklist Download — March 2009
FHA is all the rage these days. Download How to Become an FHA Approved Lender Checklist for both full and mini-eagle approval.
Supporting Resources:
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| FHA Underwriting At-A-Glance: Handy Purchase Transaction Matrix Chart Included — March 2009
Even if you do FHA loans every day, keep the FHA Underwriting Purchase Transaction Matrix handy. There may be some info you don’t recall off the top of your head. Specifically the stuff on 2-4 unit properties.
Supporting Resources:
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| The Complete FHA Streamlined Refinance Documentation, Submission & Underwriting Approval Worksheet (Current as of 2-1-09) — February 2009
The most complete and current FHA Streamlined Worksheet has been updated in the Charts and Checklists section. Use this worksheet and make sure your files are done right the first time—with no delays! No more backtracking. No more forgotten key documents.
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| FHA to Provide Education Flyers for Everyone - Getting the Word Out...Someday — February 2009
FHA has designed flyers that will be specifically directed at prospective borrowers—but it’s not available just yet! Our subscribers to receive email notice the minute FHA makes their flyers available. Remember, MortgageCurrentcy.com has some great customizable Mortgage Talking Points® flyers designed for marketing FHA information to your Realtors. Take advantage!
(FHA Mortgagee Letter 2009-02, January 7, 2009)
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| FHA Allows High Loan-Limit Streamlined Refinances for 2009 - For Mortgages Originated Under 2008 Higher Loan Limits. — February 2009
Great news! HUD has brought the 2008 high-limit “orphan” FHA loans back into the fold! These higher loan limit borrowers have so much to gain from lower interest rates right now. Not to mention the lenders who will originate their refinances. However, they must meet 2 rules!
(HUD Announcement, January 16, 2009)
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| Revised Policy for Annual FHA Renewal & Approval for Lenders — February 2009
No bailout for slackers who don’t submit their annual renewal on time. The “easy way out” just got nixed. Read the new rule on filing your lender renewals--12 months without the ability to originate FHA loans is a big loss to your bottom line.
(FHA Mortgagee Letter 2009-01, January 6, 2009)
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| FHA Appraiser Roster: Revised Eligibility & Deadline Extended — January 2009
Okay, so these new requirements are my appraiser\'s problem right? Oh but no. They\'ve made it your problem too. HUD will not be "cleaning" out its database of non-qualified appraisers for quite some time, so...the FHA appraiser that you assign an appraisal to on September 30, 2009 may create an uninsurable loan when you assign another appraisal to him on October 1, 2009. What\'s going to happen?
(FHA Mortgagee Letter 2008-39, December 17, 2008)
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| FHA Secure Has Been Terminated! — January 2009
FHA has said that the reason for pulling the plug on FHASecure was because of the MMI Fund\'s inability to handle the negative impact of the program. The good news is that HUD reinstated and simplified the rate and term refi process...read more!
(FHA Mortgagee Letter 2008-41, December 19, 2008)
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| FHA Streamlined Refinances: Refi Worksheet and Quick Reference Guide Included — January 2009
FHA Streamlined Refinance is all the craze these days! Do you want to get these loans thru the system faster and close more loans? Subscribers download the handy FHA Streamlined Refi Quick Reference Guide and Documentation/Submission/Approval Worksheet and get it “right” the first time!
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| FHA Refinance & Streamline Transactions: Revised Maximum Mortgage Calculation - Just the Tip of the Iceberg (LTV Matrix Included) — January 2009
Finally! With rates dropping and streamline refinances explosind it was about time for FHA to clarify their refinance maximum loan amount calculations! 85% cash-out refinances were NOT eliminated! Hey, now we need two appraisals. HUD created an easy-to-understand matrix - print it out. It\'s really good.
(FHA Mortgagee Letter 2008-40, December 15, 2008)
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| FHA Loans - Acceptable Down Payment Sources! (Mortgage Talking PointsTM Flyer - Shake the Money Tree) — December 2008
There are lots of lesser-known alternative sources of down payment funds acceptable to FHA. Many loan officers, real estate agents and builders either don’t know about or fully understand them. You might be able to close a few more loans by knowing this info. Download Mortgage Talking Points® Flyer – Shake The Money Tree!
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| FHA/VA: DU for Government Loans - Will Not be Updated Until 1/24/09 - It's Still Your Responsibility to Check Loan Amounts! — December 2008
The oops potential for loan buy-backs and uninsured loans is massive to say the least. You cannot depend on your DU findings for government loan amounts until January 26, 2009.
(Fannie Mae DE for Government Loans Release Notes for January 2009, on December 1, 2008)
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| FHA - Property Flipping Allowed in 5 Midwestern States — December 2008
If you are originating in these states, get the word out! Quick! This is big news for those doing business in these counties. Check your pipeline: deals that were not previously eligible for FHA financing may be now. See if your borrowers could benefit.
(FHA Mortgagee Letter 2008-37, November 24, 2008)
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| FHA HOPE for Homeowners' Program (H4H) - Is it Workable? — December 2008
It looks like lipstick on a pig to me--none of these changes make a @*!#%! difference to most of us; H4H is STILL not a viable origination tool. With that said, there is still a lot of buzz going on and subscribers are asking about it, so here’s what you need to know, in plain English!
(HUD News Release 08-178, November 19, 2008)
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| FHA Reverse Mortgages & New Origination Fee Limits - How to Figure! — December 2008
Now is the time to take a hard look at your company policy, if you have one, regarding HECM origination fees. Seems simple enough, but I hate it when HUD gives us instructions that are “open to interpretation” and they’ve done it again!! First, let me clarify a few things for you…
(FHA Mortgagee Letter 2008-34, October 31, 2008)
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| FHA Maximum Loan Limits Including Reverse Mortgage (HECM) Mortgage Loan Limits for 2009 — December 2008
Most of us are a little misty-eyed over loosing our temporary higher limits but hey, it could have been much worse...really. Create lists for your area and email or deliver them to everybody. Put the FHA limits for surrounding counties on the back of your business card and laminate.
(FHA Mortgagee Letter 2008-36, November 7, 2008 & FHA Mortgagee Letter 2008-35, November 6, 2008)
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| FHA - Maximum Mortgage Limits for 2009 - More Complicated Than You Think - Links To Loan Amount Tables Included — November 2008
So, FHA has their own limits but they threw in a couple of "kinks" in the ML. Subscribers can download the new limits, but there\'s a lot more to it, for loan officers, processors and underwriters. Complete details to follow since it was just released on November 7, 2008. This is sooooo new!
(FHA Mortgagee Letter 2008-36)
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| Home Equity Conversion Mortgage (HECM) for Purchases - It's About Time We Heard Something! — FHA Mortgagee Letter 200833 October 20 2008 November 2008
This has been a long time coming for all of you HECM originators.
The Housing Economic Recovery Act (HERA) has given the FHA HECM the higher loan limit of $417,000. This fast-growing product is headed for some off-the-charts popularity. Plus it will be the only game in town since Fannie’s Homekeeper is throwing in the towel as of December 31, 2008.
(FHA Mortgagee Letter 2008-33, October 20, 2008)
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| HOPE for Homeowners Origination Guidance - But Will it Help YOUR Clients? — FHA Mortgagee Letter 200809 October 1 2008 November 2008
While the hoopla over HOPE was great, the resulting guest list for the party is short and most of us didn’t get invited. The majority of investors, who we in the mortgage industry would be selling or brokering these loans to, have said, “After reviewing the program, HOPE for Homeowners will not be eligible for purchase from third party originators.”
(FHA Mortgagee Letter 2008-09, October 1, 2008)
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| FHA Incorporates Desk Top Underwriting - It's NOT as Automated as You Think - What to Expect! — Fannie Mae DU and Recent Government Loan Changes What to Expect November 2008
This affects everyone! This can and will affect your paycheck. Remember the good ol’ days (2 years ago) when we could be lazy (at least I was) about looking up all those pesky guidelines. Heck, just run it through DU. It will tell you if it will fly and what you need for documentation. Well, that’s no longer the case because there are lots of things you need to check before you do so.
(Fannie Mae document issued 10/1/2008: DU for Government Loans)
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| Reverse Mortgage Rules Changed to Comply with HR3221.Sec 2122 — FHA Mortgagee Letter 200824 September 16 2008 HR3221Sec2122a9 Housing and Economic Recovery Act October 2008
HERA (HR3221) revamped the entire HECM product and this is just the beginning. The new ML doesn’t say much, yet it’s truly devastating to those who are amongst the non-FHA approved brokers who have been getting paid for “assisting” HECM borrowers. No ifs, ands, or buts – “but” – it’s over! HUD realized that the “cross-selling” matter is awfully complicated, so effectively; they are not doing anything yet. At least HUD is letting us know that there are no directives until the subject is researched.
(FHA Mortgagee Letter 2008-24, September 16, 2008 - HR3221.Sec.2122(a)(9), Housing and Economic Recovery Act)
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| Do You Know When Rental Income Can Be Used for Qualifying on an FHA Loan? Vacancy Chart Included. — FHA Mortgagee Letter 200825 September 19 2008 October 2008
No question, HUD acknowledged that the whole rule change is about individuals who may “provide misleading information regarding the rental income of the property being vacated to qualify for the new mortgage” [ML 08-25], who then walk away from the first home after closing on the second.
Plain and simple – If your clients are purchasing a new home and renting the home that they currently live in, both payments must be included in the qualifying ratios. UNLESS, they fit into one of the exceptions.
(FHA Mortgagee Letter 2008-25, September 19, 2008)
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| Re-written Rule Changes: FHA-MIP, Non-Occupant Co-Borrowers, Non-Traditional Credit (Reference Charts Included) — FHA Mortgagee Letter 200822 September 4 2008 October 2008
ACKKK! The whole thing is so HUD-like. Let me explain. In the current ML (2008-22), HUD rescinds the entire ML 2008-16. Then, they "retain and reiterate" (give back) most of the same rules, yet there are quite a few technical differences. And we ALL know how technicalities make or break loans!
(FHA Mortgagee Letter 2008-22, September 4, 2008)
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| FHA's "Hope for Homeowners Program" Saves Homeowners from Foreclosure! Or - is FHASecure Better? — HR3221ENR Division A Title IV HOPE FOR HOMEOWNERS September 2008
As far as I\'m concerned, it isn\'t even worth the paper it\'s written on. I\'d choose to ignore writing about it, but Washington keeps touting it and throwing it out for the world to see, saying it will be "the" program to save borrowers who are facing foreclosure.
(HR3221.ENR. Division A - Title IV - HOPE FOR HOMEOWNERS)
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| FHA Announces Easier Condo Guidelines — HR3221 Sec 2117 Insurance of Condominiums Housing and Economic Recovery Act September 2008
The Secretary of HUD will have discretion to revise the current condominium requirements under the new Section of the Act.
I\'m not kidding, that\'s it! Apparently before, HUD was stuck with rigid rules mandated by Section 234 of the Act; NOW, Section 203(b) gives them much more control.
So here we are, knowing NOTHING for sure. But everybody keeps asking about the new condo rules, and I DO know something...
The following information came from Jim Beavers, Deputy Director of Single Family Development at HUD.
(HR3221, Sec. 2117. Insurance of Condominiums. Housing and Economic Recovery Act.)
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| Finally - Final Rule for FHA Mortgage Insurance Premiums! UFMIP, MIP Factors & Calculations AFTER 10-1-08 — September 2008
It\'s about time! It\'s quite a relief that the new UFMIP is a lot lower than it was expected to be! I think that 1.75 is a number that everyone can live with. The fun is going to be dealing with all of the various MIP factors and methods of calculations - and getting it right! Reference Chart Included.
(HUD Federal Register "Notice"; Docket No. FR-5171-N-03, 8-24-2008)
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| FHA Cash Investment & Down Payment LTV Changing. Refi LTVs Too - Encourage Clients - Act Now! — FHA Mortgagee Letter 200823 June 11 2008 September 2008
We’ve all been waiting for this because new loan amount calculations were “supposed” to be effective 10-1-08, and thank goodness they’re not. But still, the news is still incredible! I’ve never actually seen HUD really and truly “simplify” anything, let alone the loan amount calculations. They’ve actually done it this time!
And then, the refinance calculations are a shocker! There’s a bunch more, so let me go over things one at a time.
(FHA Mortgagee Letter 2008-23, June 11, 2008)
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| FHA Maximum Loan Limits - 2009 & Beyond — HR3221ENR Sec2112MAXIMUM PRINCIPAL LOAN OBLIGATION August 2008
There’s no question that it will hurt to lose the $729,750 that we’ve enjoyed from the Economic Stimulus Package. But look at the whole picture and the new ceiling is fantastic news. Without this legislation, maximum FHA’s ceiling would revert to $362,790 at the end of the year! $625,200 doesn’t sound so bad any more, does it?
(H.R.3221.ENR Sec.2112.MAXIMUM PRINCIPAL LOAN OBLIGATION)
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| What is FHA's New Down Payment, and What About the CLTV? — HR3221ENR Sec2113 CASH INVESTMENT REQUIREMENT 2112MAXIMUM PRINCIPAL LOAN OBLIGATION August 2008
Thank goodness the previous distinction in LTVs for high and low closing costs states is finally gone! It was silly from the onset. Moreover, according to *HUD, all tiered pricing is out the door. Sounds great to me.
(H.R.3221.ENR Sec.2113.CASH INVESTMENT REQUIREMENT; 2112.MAXIMUM PRINCIPAL LOAN OBLIGATION)
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| FHA - CAIVRS Telephoned Access to be Discontinued! — FHA Mortgagee Letter 200818 August 2008
ANY time that you have a potential FHA borrower, you should check CAIVRS. It can be a deal-breaker, and you need to know right up front! If you are counting on your Processor to deal with it, you may want to make sure you get the file to him/her instead of keeping it in your possession.
(FHA Mortgagee Letter 2008-18)
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| The Inside Scoop on What's Happening with FHA MIP - ON HOLD! — HR3221ENR Sec2133MORATORIUM ON IMPLEMENTATION OF RISKBASED PREMIUMS August 2008
Can you imagine the millions of dollars spent in implementing the changes with LP, DU, Lenders, LOS vendors, training involved, etc., only to be told everything must change again?
Okay, it is a fact that the new mortgage insurance won\'t be risk based. We also know that the previously legislated maximum UFMIP was 2.25% and that the new maximum UFMIP is 3.0%. As to what the new UFMIP will actually be, we flat out don\'t know. It will be 3% or less. Risk Based MIP Chart Included.
(H.R.3221.ENR Sec.2133.MORATORIUM ON IMPLEMENTATION OF RISK-BASED PREMIUMS)
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| Seller Assisted Down Payment Assisted Programs Terminated; Use Family Member Loans (Mortgage Talking PointsTM Flyer/Email Included) — HR3221ENR Sec2113PROHIBITION OF SELLERFUNDED DOWN PAYMENT ASSISTANCE August 2008
I realize that many of you have been dependent upon DPAs for a majority of your FHA business. At the same time, DPAs foreclose at a much higher rate, and are causing concern for the stability of the FHA mortgage insurance fund.
For now, however, it\'s a moot point what you or I think of DPAs; they are gone as of 10-1-08. And I can show you other alternatives!
(H.R.3221.ENR Sec.2113.PROHIBITION OF SELLER-FUNDED DOWN PAYMENT ASSISTANCE)
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| $7,500 First-time Homebuyer Income Tax Credit. Great Marketing Tool for Mortgage Loans of all Types - Mortgage Talking PointsTM Flyer/Email Included. — August 2008
"Tax Credit" my A_ _; this is a loan! And what a great loan it is!
Whether it\'s the best way or not - it\'s a done deal! And it\'s an amazingly fantastic, one-of-a-kind deal for $7,500** loan. There is absolutely no interest and the homebuyer can take a full 15 years to pay it back. The tax burden is only increased by $500 per year, after skipping a year before repayment starts.
(H.R.3221.ENR Sec.3011.FIRST-TIME HOMEBUYER CREDIT)
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| The Final Word from HUD About Non-FHA Approved Brokers — FHA Mortgagee Letter 200817 June 20 2008 July 2008
HUD finally broke down and admitted that there is an actual law that allows non FHA-approved brokers to "assist" with FHA loans! Read what HUD finally has to say, with real answers and precise instructions.
Non FHA-Approved Brokers - The Final Word from FHA(FHA Mortgagee Letter 2008-17, June 20, 2008)
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| The Real Scoop on HUD's Flipping Rule & 90 Day Holding Period Waivers — Waiver of Requirements of 24CFR 20338ab2 692008 July 2008
I can\'t believe all of the mis-information and hoopla this is causing. Rumblings all over assert that FHA\'s entire 90-day ownership period was totally waived, and it is SO not true. Lenders are acquiring properties by negotiating a deed-in-lieu rather than foreclosing. This means that the waiver applies to foreclosures, deeds-in-lieu, and any other means that a "mortgagee" may use to acquire the property from the owner.
Property Flipping 90-day Rule Change - The Real Information(Waiver of Requirements of 24CFR 203.38a(b)(2), June 9, 2008)
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| Now - the Whole Story about FHA Risk Based Pricing, MIP, UFMIP, LTV and Credit Scores: Includes Great MIP Reference Chart — July 2008
Last month I reported on FHA\'s new risk based mortgage insurance premiums per the Federal Register Notice. Knowing how karma works, FHA wrote a much more comprehensive Mortgagee Letter the day after it was published. To keep the information all in one place, I took the original text from last month and incorporated all of the new data throughout. I also did a handy-dandy, quick reference chart free to subscribers.
Risk Based Mortgage Insurance, The Comprehensive Story(FHA Mortgagee Letter 2008-16, June 11, 2008)
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| FHA Streamlined Refinances - Revised MIP and UFMIP rules - and Can't Streamline FHA Secure? — FHA Mortgagee Letter 200816 June 11 2008 July 2008
Can MIP premiums get any more complicated? Subscribers can download all of the new rules on a one-page Risk Based Premium Reference Chart. Print and keep it handy because it will instantly help you when meeting with clients.
Streamlined Refinances, MIP and More(FHA Mortgagee Letter 2008-16, June 11, 2008)
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| Part Two: FHA Cash-Out, No Cash-Out, Rate and Term, Refinance Saga Continues — FHA 200813 May 7 2008 July 2008
Aghhh! Did I say that you can\'t squeeze blood from a turnip? If you go back to the questions from last month\'s “FHA No cash-Out, What Has Happened to this Program?” I don’t have all the answers. But I have a few, along with some new twists.
The ability to add a non-occupant co-borrower to any 85% cash-out transaction is fantastic! Use it!
Part II, FHA Refinance Saga(FHA 2008-13, May 7, 2008)
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| FHA Cash-Out Refinance, 95% LTV and 85% LTV Rules — Mortgagee Letter 200813 May 7 2008 June 2008
The biggest thing to come out of this is the dis-allowance of non-occupant co-borrowers. They WERE previously allowed on 85% LTV cash-outs. This upsets me terribly, but realistically, hardly anybody knew you could do them to begin with. (See related handbook: FHA & VA Streamlined Refinance Handbook)
Cash-Out Refi Changes & Clarifications(Mortgagee Letter 2008-13, May 7, 2008)
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| New MCAW! Comes New FHA/VA Addendum to 1003 - and - New Learning Curve — Mortgagee Letter 200815 May 22 2008 June 2008
Oh goodie, all of your software\'s going to change! There will definitely be a learning curve. But it WILL be worth it because the new MCAW is SO much better than the old one! But you\'d be well advised to read what you are attesting to. (See related guide: FHA Lending - Originating, Processing and Underwriting Guide)
New! Easier MCAW, Revised Addendum(Mortgagee Letter 2008-15, May 22, 2008)
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| FHA Secure - SO Much More: Includes Rule Changes for FHA Chas-Out, FHA No Cash-Out, FHA Manual Underwriting — June 2008
This is complicated and there\'s a lot more to it than meets the eye. The title implies that it only deals with FHA Secure, but that\'s NOT TRUE! It changes the rules for ALL FHA refinances except for Streamline Refi\'s.
FHASecure - SO MUCH more than it appears(Mortgagee Letter 2008-13, May 7, 2008)
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| Intro of Risk Based MIP and UFMIP - Credit Scores and LTV Decide! — Federal Register Vo 73 No 93 Tuesday May 13 2008 Notices June 2008
I\'m in total shock! FHA just made it a RULE that all loans (that have credit scores) MUST be submitted to TOTAL!
In order to calculate the UFMIP or the maximum loan amount, the credit score must be obtained from the AUS.
Risk Based MIP Brings NEW Glitches(Federal Register / Vo. 73, No 93 / Tuesday, May 13, 2008 / Notices)
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| Are There Loopholes for Non-FHA Approved to Originate FHA? To do HECM Loans? — Mortgagee Letter 200814 May 16 2008 June 2008
The only way that I can see around this is by having a contract with the lender wherein all parties agree to the lender providing you with all information regarding the loan\'s status.
They are using any method possible to encourage the origination of FHA HECMs. After all, this IS a great program, and it also looks great for HUD politically!
Non-FHA Approved Mortgage Brokers - HECM or Everyone? (Mortgagee Letter 2008-14, May 16, 2008)
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| HECM (Reverse Mortgage) Counseling Fee Allowed — Mortgagee Letter 200812 May 6 2008 June 2008
Housing Agencies that are approved to provide counseling services for HECM borrowers or their families may now charge a fee for their services.
And yes, it does matter if you are involved in HECM originations because there will be another charge to (most of) your clients - whom are elderly with limited income.
Fee Allowed for HECM Counseling Services(Mortgagee Letter 2008-12, May 6, 2008)
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| FHA No Cash-Out Refinance, Conventional-to-FHA Gone? How to Deal with Changes — Mortgagee Letter 200813 May 7 2008 June 2008
I recommend getting a case number on everything that you have pending before 7-14-08. Being able to subordinate an existing lien when the CLTV exceeds the statutory limits is excellent news!
"Did FHA really mean that all conventional-to-FHA "co cash-out" mortgages must move to the FHASecure Program? (Unfortunately, I think they did.) I recommend getting a case number on everything that you have pending before 7-14-08."
FHA No Cash Out, What has Happened to This Program?(Mortgagee Letter 2008-13, May 7, 2008)
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| Good News! FHA Finally Defines Non-Traditional Credit Requirements — Mortgagee Letter 200811 4292008 May 2008
FHA finally came up with guidelines for non-traditional credit! DE Underwriters have been all over the place about what is allowed, and smart originators/brokers shopped underwriters for this reason alone!
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| FHA Jumbo: Cash-Out Refinance LTV Reduced/Two Appraisals in Declining Markets — Mortgagee Letter 200809 April 1 2008 April 2008
You have to admit that a 95% cash-out refi on a jumbo loan was too good to be true. You know, an 85% cash-out FHA-Jumbo is still an awesome loan. It allows: 1-4 unit properties; 1-unit homes only (not 2-4s), you can include a non-occupant co-mortgager to help with qualifying (but not to overcome bad credit). Fannie doesn\'t even have jumbo cash-out refis; and Freddie-jumbos are only 75% LTV with all kinds of fees and a 720 FICO. There\'s still no comparison.
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| HECM (Reverse Mortgages) Offer Fixed Rate — FHA Mortgagee Letter 200808 March 282008 April 2008
If you originate HECMs - I\'m kind of excited about this. I got my own Mother into a HECM. Now I want to check into her changing options and getting a fixed interest rate, which wasn\'t, to my chagrin, available when she took out her loan.
For those of you who don\'t currently originate HECMs - With the aging of America, the HECM is the fastest growing program out there. It\'s a great opportunity to develop a niche, and there is plenty of room for "experts" in this field.
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| FHA Jumbos - The Greatest Loan on Earth! — Mortgagee Letter 200806 March 7 2008 April 2008
This FHA happening is the biggie of the decade!! Honestly! FHA went from 2% of the overall mortgage market share in the country to 90% of the market’s demand overnight. (FHA Lending Manual Product) Although I provided a brief review in the March MortgageCurrentcy.com, the following is much more comprehensive:
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| Door Opened for Non FHA-Approved Brokers and Originators — FHA Policy Alert wwwfhagov Homepage April 2008
Everyone is always looking for a way to get around the rules; I think it\'s human nature. The following is for those of you who are not-FHA-approved in a market in which FHA is one of the few viable loans left. You can\'t just idly stand by watching everyone else get all of the business, can you? However, HUD left a teensy-weensy door opening for non-approved brokers to squeeze into.
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| Temporary FHA Loan Limit Increase! — Mortgagee Letter 200806 March 2008
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| "What is the 203K Streamlined all About and Why Should I Look Into Doing These Types of Loans? Learn how a typical transaction works." — Streamlined 203k the Greatest Thing Since Sliced Bread March 2008
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| FHA Defines the Use of 1099's and W-2's for Loan Originators. (Link to Reference Source for Proof.) — FHA Tip W2 or 1099 March 2008
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| How to Increase FHA Loan Limits in Your Area of the Country. — Mortgagee Letter 200802 January 18 2008 February 2008
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| FHA - HUD Policy Alert - RESPA and non FHA-Approved Brokers or Originators — Policy Alert a hrefhttpwwwfhagovwwwFHAgova January 2008
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