24
NOV
2015
Condo-FHA-HUD-Project-approval-Recertification-

FHA Condominium Policy Changes – Some Good News & Some Bad News!

In Mortgagee Letter 2015-27, dated November 13, 2015, HUD/FHA announced some subtle changes in its condominium project approval and recertification policies and procedures. Although it is stated that HUD expects to “increase the pool of condominium projects eligible for FHA...
20
NOV
2015
2-months-Unclear-HUD-appraisals

FHA’s Rule Change of a Three Year Sales History on Comps – What about the recent past?

The 3-year reporting requirement for comp sales had only been in effect for less than 2 months and was the topic of much discussion at the various industry webinars and conferences conducted by HUD/FHA staff prior to the September 14, 2015, implementation date. In my blog post...
17
NOV
2015
Fannie-Mae-vs-Fha

Differences Between Fannie Mae and FHA Appraisal Policies

Appraisers, Underwriters, and Quality Control staff that are involved with the processing and/or review of Fannie Mae and HUD/FHA loan transactions need to be cognizant of the differences between Fannie Mae & FHA appraisal policies on various topics.  Outlined below are five...
13
NOV
2015
VA-FHA-on-TRID

TRID Compliance for VA and FHA loans

Now that it has been a little over a month since the official TILA-RESPA Integrated Disclosure (TRID) implementation date, many loan transactions are now closing which are subject to the new TRID rules and use of the TRID required forms (i.e. Loan Estimate and Closing...
06
NOV
2015
FHA-3-Year-Comps

FHA Changes its Mind about Reporting 3 Year Sales Comps History

What will come as welcome news to FHA Roster Appraisers – FHA has decided to rescind its short-lived policy to require appraisers to report the date(s) and sales price(s), that occurred within three years of the effective date of the appraisal, for each comparable sale. In its...
02
NOV
2015
HUD-Too-Much-Paperwork

FHA Condominium Rules – Too Restrictive OR Prudent Underwriting?

Pressure has been building recently from lawmakers and housing advocates for HUD to trim its condominium rules and regulations in order to assist prospective borrowers in obtaining FHA financing on condominium units. Many feel that there is too much paperwork involved with the...
28
OCT
2015
FHA-Top-10-ten

Top Ten Listing of FHA Policy Changes

If your Firm is involved with the origination of FHA loans, it is essential that you are aware of the more significant policy changes. These changes became effective for transactions that obtained their FHA case number on & after September 14, 2015. Admittedly, lenders have...
22
OCT
2015
Fannie-Mae-KISS

Fannie Mae is Trying to Simplify Loan Processing

Innovations via Technology – Making the Loan Origination Process More Effective & Efficient  On October 19th, Fannie Mae announced a series of innovations that will collectively have a positive impact on the loan origination process. The ultimate objectives of these...
20
OCT
2015
Fannie-mae-freddie-mac-defect-taxonomy

Defects and Remedies – A Changing Environment

In separate Announcements, both dated October 7, 2015, Fannie Mae and Freddie Mac indicated that they will begin categorizing loan origination defects, as of January 1, 2016, in one of three ways.   They are as follows: Findings Price-Adjusted Loans Significant Defects The...
14
OCT
2015
4000.1-Handbook-Transfers

Transferring FHA Appraisals & Case Numbers to other Lenders

What You Need to Know! In this highly competitive mortgage lending industry, there are times in which a lender will be asked to transfer an FHA appraisal and/or case number by one of their competitors. Maybe a prospective borrower has obtained a better interest rate/points with...