The Federal Housing Administration (FHA) on Tuesday announced that it has updated its multi-section Single Family Housing Policy Handbook 4000.1 to incorporate improvements and changes to existing guidelines as well as various technical changes. In most cases, this newly added language complements and enhances existing policies in line with the FHA announcement.
“FHA remains committed to making it easier to run the mortgage business by maintaining and improving Handbook 4000.1 with regular planned updates to ensure that it remains a comprehensive source of policy advice for single family mortgage creators, service providers and other stakeholders.” the announcement of the updates is said in the message.
The most recent updates for the reverse mortgage industry are centered on Section V of the Quality Control, Supervision and Compliance Guidelines.
This section of the guide includes rules requiring mortgages not approved to file eCaseBinder (eCB) through FHA Connection (FHAC) to use the FHA Catalyst: Case Binder module to file both Single Family Forward and Home Equity Conversion Mortgage (HECM ) that have been requested through the Loan Analysis System (LRS) for technical review after approval.
Additions to this section also include policy guidance on the default amount of Early Payments requiring valuation field validation, and clarifies property quality control and appraisal verification requirements to meet property eligibility criteria and appraiser and title deeds requirements. II forward and HECM. mortgage.
Section IV, Claims and Dispositions, explains alternative claims handling documentation that the US Department of Housing and Urban Development (HUD) will accept as proof of tax payment from the IRS. Sections II and III, “Arising by Closure / Approval” and “Servicing and Loss Mitigation”, respectively, include instructions issued in letters to mortgagees (ML) during the Biden administration, in particular ML 2021-3. 2021-14 as well as 2021-15 – in relation to the policy of abstinence and other options for reducing losses initially available during the COVID-19 coronavirus pandemic.
FHA official representative in May pointed out to the reverse mortgage industry, that all previous FHA HECM guides handed over through ML can be considered voluminous for new and existing industry entrants, and that FHA is considering ways to consolidate all previous HECM recommendations into Single Family Housing 4000.1 Handbook.
This will allow industry participants to refer to the Single Family Handbook for a more holistic view of the government’s recommendations on reverse mortgage lending policies, said Lopa P. Colluri, First Deputy Assistant Secretary (PDAS) of the Housing Authority and FHA.
To read details of updating the directory at FHA.