FHA Corrects Incorrect Maximum LTV Factor for 203(k) Loans
Pursuant to FHA INFO #16-17, dated March 17, 2016, the FHA corrected an error that appeared in the Single Family Housing Policy Handbook 4000.1 (SF Handbook) related to an incorrect Maximum LTV Factor at Step 3.F, Determining Loan-To-Value Factor for Maximum Mortgage Eligibility, for the Standard 203(k) Purchase Program and Limited 203(k) Purchase Program. For Standard 203(k) and Limited 203(k) purchases with a Minimum Decision Credit Score (MDCS) at or above 580, and for No Credit Score with Manual Underwriting, the correct Maximum LTV factor is 96.5 percent.
Updated Form: HUD/VA Addendum to URLA (Form 92900-A)
In FHA Info #16-16, the Federal Housing Administration (FHA) recently published the final version of the revised HUD/VA Addendum to the Uniform Residential Loan Application (Form 92900-A). This updated form is effective for all FHA Case Numbers assigned on or after Aug. 1, 2016. Note that the revised version of the HUD/VA Addendum may not be used until its effective date.
FHA Announces SF Handbook as Single Source for Single Family Housing Title II Mortgages
Pursuant to FHA INFO #16-15, dated March 14, 2016, the FHA announced significant updates to its Single Family Housing Policy Handbook 4000.1 (SF Handbook), making it an end-to-end source for almost all Single Family Housing Title II forward mortgage policy. The SF Handbook may now be used as a single source of Single Family Housing policy for: (1) Obtaining and maintaining FHA approval; (2) Originating almost all Title II forward mortgage products and programs; (3) Obtaining an FHA insurance endorsement; (4) Performing servicing and loss mitigation functions on FHA-insured mortgages; and (5) Understanding and applying quality control practices.
Fannie Mae Issues Selling Guide Announcement SEL-2016-02
Fannie Mae issued Selling Guide Announcement SEL-2016-02 to announce updates to the following: (1) Continuity of obligation; (2) Lender self-report obligations; (3) Indemnification for losses; (4) HomeStyle Renovation mortgage recourse obligations; (5) Definition of Relocation Loan; (6) Miscellaneous Selling Guide updates; (7) Revisions to the Pennsylvania security instrument and new notes; (8) Updates to the Special Feature Codes list; and (9) Publication of Fillable Rental Income worksheets. To view SEL-2016-02 and the Executive Overview of Selling Guide Updates, please access Fannie Mae’s Web site.
Updated Forms: Pennsylvania Mortgage and Notes
As announced in Selling Guide Announcement SEL-2016-02, dated Feb. 23, 2016, Fannie Mae and Freddie Mac have updated the Pennsylvania Mortgage (Form 3039) and created state-specific notes for Pennsylvania as a result of recent judicial decisions. The updated security instruments and notes have been posted on Fannie Mae's Web site. While lenders may begin using these updated forms immediately, use of these forms is mandatory, beginning Aug. 1, 2016.
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 April 2016 print edition of National Mortgage Professional Magazine.
