19
JUN
2015
Yes No Maybe FHA VA

Can Tax Service Fees be charged to a Borrower on VA or FHA Loans?

Answer(s):  No, Maybe and Yes (in the near future) As one can tell from the answers outlined above, there is some confusion and inconsistencies in the underwriting policies of VA and FHA relative to the topic of charging Tax Service fees to borrowers. Unfortunately, this...
15
JUN
2015
PreFunding Review required by HUD FHA

Are You Prepared for Pre-Closing/Pre-Funding Reviews?

Pre-Closing (or Pre-Funding) Reviews Will Now Be Required on FHA Loans In HUD’s draft “Origination Through Post-Closing/Endorsement Handbook” it is stated that a mortgagee’s required Quality Control (QC) sample must comply with the following balance of pre and...
10
JUN
2015
blogics.loanlogics.com Free Something for nothing

It’s True! You can get something for nothing in the mortgage business.

Freddie Mac On May 29, 2015, Freddie Mac has stated that, beginning June 1, 2015, the use of Loan Prospector will be free for all new loan submissions.  Loan Prospector is Freddie Mac’s automated underwriting system which provides feedback to lenders on loan eligibility as...
04
JUN
2015
Lenders FHA Borrowers DE Underwriters Certified

What are you certifying on an FHA Loan Transaction? Are you aware of the False Claims Act?

Attention: Lenders, FHA Borrowers, and DE Underwriters Much publicity has been generated recently on several major lawsuits filed by the Department of Justice (DOJ) based on allegations that certain lenders violated the False Claims Act by knowingly submitting improperly...
03
JUN
2015
Federal Housing Authority Rural Housing Service

Merge Rural Housing Services with FHA – Easier Said than Done!

Matthew Scire, Director of Financial Markets and Community Investment for the Government Accountability Office, suggested that the Rural Housing Service should merge with FHA to save money and improve service, in testimony on May 19th in a House Financial Services subcommittee...
01
JUN
2015
FHA Top 10 Handbook concerns

Top Ten List of Concerns with Federal Housing Administration’s Draft Handbook 4000.1

In honor of David Letterman’s recent departure from television, I have compiled a Top Ten list of concerning policies in HUD/FHA’s draft 4000.1 Handbook. Number 10:  The Mortgagee must re-verify, in writing or electronically if available, employment, income, assets,...
20
MAY
2015
FHA-HUD-Online-Handbook

Available On-Line! FHA’s Post-Closing Handbook (4000.1)

On May 18, 2015 the Housing and Urban Development/Federal Housing Agencies announced that a draft version of their Origination Thru Post-Closing/Endorsement Handbook is available on-line via a link from their HUDCLIPS web page. The link will direct them to the Handbook on the...
15
MAY
2015
Housing and Urban Development Homeowners Armed with Knowledge

The “HAWK” is DEAD! – Housing and Urban Development “Homeowners Armed with Knowledge”

As an alumni of Villanova University, the phrase “The HAWK is Dead! The “HAWK is Dead!  I heard countless times during the annual basketball game between Villanova University (the Wildcats) and their Big Five rival St. Joseph’s University (the Hawks).  This game typically...
12
MAY
2015

Looking to Purchase or Finance a Bed and Breakfast?

Your options are limited! Lenders beware – the financing of Bed & Breakfast facilities can result in a Repurchase or Indemnification Agreement Request. Recently, a client asked our Firm about financing opportunities for a Bed and Breakfast establishment.  Usually located in...
07
MAY
2015
GSE Requirements for Large Deposits

What is considered a “Large” Deposit?

The wrong answer to this question could prove costly – in the form of a Repurchase or Indemnification Agreement Request if the files you are underwriting are inadequately documented. I recently had the opportunity to review some Fannie Mae MORA Audit Reports, as well as some HUD...