On April 8, 2016, I had alerted lenders that there was an important government deadline quickly approaching and advised them not to miss this “last chance” opportunity. NO, I was not referring to the deadline established for filing Income Tax returns with the IRS. Instead, I discussed HUD/FHA’s very last onboarding phase (which was held on April 15, 2016) for…
HUD/FHA’s Electronic Appraisal Delivery (EAD) Portal Deadline Approaching The HUD/FHA Electronic Appraisal Delivery (EAD) portal will become mandatory for use by all mortgagees on June 27, 2016. In order to prevent huge disruptions in their FHA loan origination pipeline, “lenders are encouraged to get registered for onboarding to the EAD portal before the effective date”, was the word from HUD…
In honor of college basketball’s annual “Big Dance” held in March in which approximately 68 men’s teams compete for the NCAA Championship and ultimately boils down to the “Final Four.” It is a good time to reflect on the Four C’s of Single Family loan underwriting. They are Capacity, Credit, Cash and Collateral. Outlined below is a brief description of…
Lenders need to be aware of policy & procedural changes are being implemented by HUD/FHA on March 14, 2016. One of these changes involves a requirement to obtain a new appraisal when processing an FHA loan transaction on a HUD Real Estate Owned (REO) property. Under current guidelines, which have been in effect for many years, an “AS-IS” appraisal of…
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 from Nov. 6th, I discussed FHA’s recent decision to rescind its short-lived policy…
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 examples of these differences: Using a previous appraisal on a subsequent refinance transaction Fannie Mae will allow a…
