18
JAN
2016
FHA-mixed-use-financing

Financing a Mixed-Use Property is now Easier – Is that a Good Thing?

Financing options for mixed-use properties have greatly expanded thanks to a change in a long-standing FHA rule limiting FHA Section 203(b) mortgage insurance to properties that have non-residential portions exceeding 25% of the total floor area. Up until September 14, 2015, a...
08
JAN
2016
PETR-Data-FHA-post-endorsement-technical-reviews

FHA’s Post-Endorsement Technical Review Results – Third Quarter of FY 2015

HUD/FHA released the results of its Post-Endorsement Technical Reviews (PETRs) that were processed in the third quarter of FY 2015 (April 1, 2015, through June 30, 2015), in its most recent Lender Insight Report issued in December 2015.  The results of their PETR Ratings on these...
05
JAN
2016
URLA-redesign-Updated-Uniform-residential-loan-application

Updated and Redesigned – Uniform Residential Loan Application (URLA) Coming this Summer!

It’s hard to believe that the current Uniform Residential Loan Application (URLA) Form has not had any substantive changes in the past 20 years. Despite numerous programmatic and policy changes implemented by the Federal Government’s Housing Agencies (i.e. HUD, VA &...
22
DEC
2015
VA-Spousal-Status

What Lenders need to know about Spousal Status on VA Loan Applications!

The Veterans Administration (VA) announced that, effective immediately, lenders “may accept a Veteran’s assertion of spousal status when a Veteran is applying for home loan benefits,” in Circular Letter 26-15-29, dated November 5, 2015. In light of the recent Supreme Court...
18
DEC
2015
USDA-Future-Look

USDA Rural Development – a Look to the Future!

USDA Rural Development has recently introduced a new security role of “Lender Agent” to their participating lenders. This new role will enable lenders to provide Guaranteed Underwriting System (GUS) access to third party agents such as mortgage brokers and/or correspondent...
15
DEC
2015
Good-News-Freddie-mac-modifies-policies

Good News! -Freddie Mac Modifies Policies on Borrower Funds, Reserves, & Contributions

Freddie Mac has modified some of its long-standing underwriting policies that should help reduce the paperwork burden for lenders in qualifying prospective borrowers, in their Guide Bulletin 2015-20, dated December 2, 2015. Outlined below is a summary of each of these changes:...
10
DEC
2015
FHA-this-just-in-Mortgage-limits

FHA Mortgage Limits to Remain the Same – except 188 Counties

HUD/FHA announced that their FHA maximum mortgage limits will remain the same in 2016, in a press release dated December 9, 2015.  There will be no change in the national loan limit “ceiling” of $625,500 or the “floor” of $271,050. This announcement will end all speculation that...
09
DEC
2015
FHA-Pre-Close-Post-Close

Pre-Closing (or Pre-Funding) Reviews Are Now Required on FHA Loans!

Most lenders are aware that Fannie Mae has an established policy that requires the processing of pre-funding (or pre-closing) reviews as part of a lender’s overall written Quality Control Plan.  These documented procedures must include (at a minimum) the timing of the...
07
DEC
2015
FHFA-Stay-The-course-MaxConforming-loan-limits

FHFA: “Max Conforming Loan Limit” for Fannie Mae & Freddie Mac Loans Stay the Course

The Federal Housing Finance Agency (FHFA) announced that the maximum conforming loan limit for mortgages acquired by Fannie Mae and Freddie Mac in 2016 will remain at the existing levels, In a News Release, dated November 25, 2015. That means that for most of the country, the...
02
DEC
2015
FHA-MMIF-2.07-percent

FHA Mortgage Insurance Premiums – Should they be reduced again?

HUD/FHA announced that its Mutual Mortgage Insurance Fund (MMIF) greatly increased in Fiscal Year 2015 to a level above its congressionally mandated capital ratio target of 2%, on Monday, November 16, 2015. Although the mortgage industry has been aware of the fact that...