As a friendly reminder, for all loans with the FHA case number assigned as of August 1, 2016, a lender must execute the new, improved HUD 92900-A when approving the loan (92900-A). This is the document containing the certifications made by the borrower and lender in connection with obtaining and granting an FHA-insured mortgage. This is the culprit that has…
CFPB’s long-awaited and much-anticipated Proposal for updating the “Know Before Owe” rules, or TRID, as it is better known to the lending industry, are now out. (Read all about it) The proposal answers some questions, clarifies prior comments, leaves some things unanswered, and closes the door on certain specific issues of major interest to the industry. CFPB indicates that it…
The days of mailing postcards to neighbors announcing the sale of a local home may be coming to an end. Bad news for those postcard makers; but, good news for Realtors and lenders. Is it good news for homeowners? Using ‘Big Data’ and proprietary marketing systems, Realtors may be able to identify those homeowners within a specified area that are…
Based on FHA’s most recent Lender Insight newsletter (Insights), FHA lenders are not doing so well in managing their initial gross defects. According to the FHA’s post-endorsement technical reviews, over the past 2 years, the initial unacceptable defect rate is averaging just south of 50%. That means that about half of the loans delivered for FHA insurance have substantial defects.…
The other day I posted a blog outlining FHA’s policy on the acceptance of properties encumbered by PACE (Property Assessed Clean Energy) loans for FHA insured financing. If you missed it, (click here). To be fair, here’s the other side of the story. The MBA is concerned that the financing of such properties may have some serious repercussions on the…
HUD’s Deputy Secretary, Nani Coloretti, issued a statement advising lenders that although HUD allows government-sponsored Down Payment Assistance, it must comply with their rules (DPA Issue). DUH! This was intended to clear up confusion previously created when Principle Deputy Assistant Secretary, Ed Golding, issued his letter back on May 25th on this same issue (Letter). That letter was intended to…
