Items Tagged with 'mortgagee letter'

ARTICLES

  • FHA takes steps to streamline reverse mortgage underwriting

    Releases specific guidance on the contracting of third parties to verify financial info
    The Federal Housing Administration has taken steps to streamline the cumbersome financial assessment process for lenders, recently releasing updated guidance that specifically approves the use of third-party verification – or TPV – to collect a borrower's financial information.
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  • FHA takes steps to relieve balance sheet stress for reverse mortgage issuers

    Relaxes documentation guidelines to streamline assignments to HUD
    The Federal Housing Administration issued new guidelines Monday to ease documentation requirements for reverse mortgage issuers. With revised rules in place, the FHA aims to address the rigorous reporting requirements that were gumming up the works, adding serious stress to the balance sheets for reverse mortgage issuers.
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  • Legal: A Fall Roundup of HECM Program Changes

    With the leaves changing colors and fall upon us, we once again provide an update on recent Mortgagee Letters issued by the U.S. Department of Housing and Urban Development (HUD) concerning the Home Equity Conversion Mortgage (HECM) program, including a significant policy change clarified by HUD in frequently asked questions on its website. Some of these changes relate to counseling issues and provide more form than substance. However, a substantive policy change relating to short payoffs promises to have dramatic implications for non-borrower spouses and heirs who wish to retain the collateral property following death of the borrower. Short Payoffs
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  • HUD Adds Intermediaries to the Counseling List

    The Department of Housing and Urban Development (HUD) has added three intermediaries to the list of counseling agencies required to be provided to prospective borrowers. Mortgagee Letter 2011-26 (ML 11-26) lenders are required to included HUD-approved intermediaries that are awarded HECM counseling grant funds by HUD. This list is updated each year, typically in January. HUD noted that updates could be added at other times, as well, as awards are given. It is the lenders responsibility to ensure they update the current contact information for intermediaries and agencies. With the inclusion of the three new intermediaries to the existing
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  • Legal: A Springtime Review of New HECM Mortgagee Letters

    With winter ending, the snow melting, and love back in the air, there seems to be no better time for reviewing the HECM Mortgagee Letters released by HUD during the first quarter of 2011. Fortunately, with so many other regulatory changes impacting the industry, the volume of HECM-specific Mortgagee Letters issued by HUD remained manageable, with only two letters, ML 2011-01 and ML 2011-09, published during the first quarter. Notwithstanding the foregoing, following the end of the quarter, and as this article went to press, HUD published ML 2011-16, a significant missive concerning the proper application of the non-recourse provisions
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  • HUD Issues Advertising Guidance

    In a new mortgagee letter, the Department of Housing and Urban Development (HUD) has issued additional guidance regarding the use of the HUD or Federal Housing Administration (FHA) logos, name or acronyms in advertising.  Mortgagee Letter 2011-17 states that the clarification is intended "to ensure that consumers, current homeowners, and potential homebuyers are properly informed of the authorship of advertisements that promote FHA products and are not misled to believe that the service or product being advertised is HUD or FHA-approved or endorsed."   According to the letter, FHA-approved mortgagees are allowed to display one of two official "FHA
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