FHA Single-Family Handbook Changes, Effective Sept. 14, 2015
On Sept. 30, 2014, the U.S. Department of Housing & Urban Development (HUD) published the FHA’s new Single-Family Handbook 4000.1. The Handbook consolidates (and supersedes) many of the existing HUD Handbooks, Housing Notices, Single-Family Housing Mortgagee Letters and other documents to provide a single, comprehensive reference guide to all lenders that offer FHA/HUD -related single family mortgage products.
An updated Section 6(b) of the Handbook requires that the mortgagee “develop or obtain a separate Mortgage and Note that conforms generally to the Freddie Mac and Fannie Mae forms in both form and content, but that includes the specific modification required by FHA set forth in the applicable Model Note and Mortgage,” and complies “with all applicable state and local requirements for creating a recordable and enforceable Mortgage, and an enforceable Note.”
An updated Mortgage and Note are effective for all FHA Case Numbers assigned on or after Sept. 14, 2015.
FHA lenders should make sure to Accordingly, DocMagic Inc.’s Compliance Department has created updated their FHA Security Instruments and Notes to comply with the Model forms as well as the any instructions that FHA has issued for preparing same. These updated documents should be included will return in all closing loan packages that have an FHA Case Number Assigned Date of Sept. 14, 2015 or after.
Updated Form: Georgia Security Instruments
Effective July 1, 2015, Georgia House Bill 322 (HB 322) amended, among other matters, a number of statutes under Title 44 of the Official Code of Georgia Annotated related to witnessing requirements for deeds, mortgages and bills of sale.
Pursuant to the amendments under HB 322, a security instrument (mortgage) that is secured by real property in the State of Georgia is no longer permitted to be acknowledged. Instead, Georgia Code Ann. § 44-14-33, 44-14-34 and 44-14-61 each requires an officer described in Georgia Code Ann. § 44-2-15, which includes a notary public, to attest or witness the mortgagor (borrower) signing the security instrument. Note that a second (unofficial) witness must also attest to the borrower’s execution of the mortgage.
Accordingly, lenders originating mortgage loans in Georgia should ensure that their Georgia security instruments meet the new document recordation requirements under HB 322.
CFPB Releases New Tools for the Know Before You Owe Mortgage Initiative
On Sept. 17, 2015, the CFPB released new online tools as part of its “Know Before You Owe” initiative. These new online tools are additions to the CFPB’s “Owning a Home” interactive toolkit aimed at helping consumers navigate the mortgage process. The CFPB added new tools, including a guide to the mortgage milestone, a monthly payment worksheet, and an interactive sample of the new Know Before You Owe mortgage forms. These forms are available to everyone for free and are encouraged by the CFPB to be used by consumers, real estate professionals and mortgage professionals. Click on this link to access these resources at ConsumerFinance.gov/Know-Before-You-Owe.
If you have any questions regarding the contents of this article, please contact DocMagic’s Compliance Department.
Gavin T. Ales is chief compliance officer with Torrance, Calif.-based DocMagic Inc. He may be reached by phone at (800) 649-1362, ext. 6446 or e-mail [email protected].
This article originally appeared in the October 2015 edition of National Mortgage Professional Magazine.
