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Industry Updates: May 2016

Jul 01, 2016

New 203(k) Calculator available
Pursuant to FHA INFO #16-25, the Federal Housing Administration (FHA) implemented a series of updates to its FHA Connection (FHAC) system on April 18, 2016 that includes a new 203(k) Calculator that automates Maximum Mortgage Amount calculations required for both the Standard and Limited 203(k) programs. The new 203(k) Calculator is accessible in both a public version on HUD.gov and a secure version within the FHAC system. Note that the FHA is offering a Webinar on April 28, 2016, to discuss the 203(k) Calculator as well as the other enhancements to the FHAC system.

VA announces new Mandatory Stacking Order for Purchases, Cash-Out Refis and IRRRLs 
Circular 26-16-12 announces the Department of Veterans Affairs’ (VA) new mandatory Stacking Order for Purchases or Cash-Out Refinances and Interest Rate Reduction Refinance Loans (IRRRLs) for a full file loan review of all loan applications submitted to the VA on or after June 1, 2016. Please visit the VA’s Web site to view the Circular and Exhibits.

VA clarifies policy on itemizing fees on TRID’s Closing Disclosure 
Circular 26-16-11 explains the Department of Veterans Affairs’ (VA) requirements regarding the completion of the Closing Disclosure (CD) under the TRID Rule. The requirements set out in this Circular will apply to all VA-guaranteed home loans originated on or after June 1, 2016. In addition, this Circular clarifies how to treat loan expenses not expressly permitted by VA regulations. Circular 26-16-11 provides sample Closing Disclosures as Exhibit A and Exhibit B. Please visit the VA’s Web site to view the Circular and Exhibits.

Selling Guide announcement SEL-2016-03 
Fannie Mae announced through its Selling Guide Announcement SEL-2016-03 changes to the following topics in its Selling Guide:

1. HomeStyle Energy Mortgages;
2. Multiple Financed Properties;
3. Updates to Texas Section 50(a)(6) Loans;
4. Co-op Policies;
5. Flood Insurance Coverage Requirements; and
6. Miscellaneous Selling Guide Updates

Please visit Fannie Mae’s Web site to view Announcement SEL-2016-03 and the corresponding Executive Overview.

Melanie A. Feliciano Esq. is DocMagic Inc.’s chief legal officer and currently serves as editor-in-chief of DocMagic’s electronic compliance newsletter, The Compliance Wizard. She received her JD from the Georgetown University Law Center, and is licensed in California and Texas. She may be reached by phone at (800) 649-1362 or e-mail [email protected].

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Published
Jul 01, 2016
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