On August 6, 2024, in Mortgagee Letter (ML) 2024-16, the Federal Housing Administration (FHA) announced an extension for the implementation of recent Appraisal Review and Reconsideration of Value (ROV) guidelines through and to October 31, 2024. The guidelines, further detailed in our blog post “FHA Announces New Guidelines Allowing Borrowers to Challenge Appraisals
Over the past month, the Federal Housing Administration (FHA) has enacted and proposed several changes to its Defect Taxonomy. The Defect Taxonomy is contained in Appendix 8 to FHA Handbook 4000.1. The Defect Taxonomy was originally designed to allow FHA to characterize underwriting related errors in FHA mortgages. Now, if these recent changes are
Following a long wait, the U.S. Department of Housing and Urban Development (HUD) published a revised version of the Fair Housing Administration’s (FHA) handbook governing the origination and servicing of FHA loan products, including Home Equity Conversion Mortgages (HECMs, which are more commonly known as “reverse mortgages”). While the revisions in the new handbook are
On May 1, 2024, the Federal Housing Administration (FHA) issued Mortgagee Letter (ML) 2024-07 titled “Appraisal Review and Reconsideration of Value Updates,” which enhances the agency’s current policy on home valuations. ML 2024-07 underscores FHA’s ongoing commitment to addressing appraisal bias, which directly aligns with the Interagency Task Force on Property Appraisal and Valuation Equity’s
On April 22, 2024, the Department of Housing and Urban Development (HUD) published its final rule regarding updated flood insurance requirements in certain areas of the country: Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Federal Flood Risk Management Standard. The new rule implements the
Amidst record-level interest rates, on February 21, 2024, the Federal Housing Administration (FHA) announced a new loss mitigation option, the Payment Supplement, to aid struggling borrowers. The Payment Supplement will bring a borrower’s mortgage current, as well as provide a temporary reduction in the borrower’s monthly principal mortgage payment for a term of three years.
Consistent with its mission to safeguard against fraud, waste, and abuse, the Office of Inspector General (OIG) of the U.S. Department of Housing and Urban Development (HUD) recently announced concerns regarding Ginnie Mae’s management of its Home Equity Conversion Mortgage-Backed Securities (HMBS) Program.
On November 15, 2023, the HUD OIG issued the Top Management Challenges
Last week, the Department of Housing and Urban Development (HUD) revised multiple regulations and requirements related to servicing Home Equity Conversion Mortgages (HECMs, more commonly known as “reverse mortgages”), with the goal of updating and streamlining the program to improve its long-term performance.
In recognition of rising interest rates and other market conditions that are
On May 31, 2023, the Federal Housing Administration (FHA) published a draft Mortgagee Letter (ML) titled “Proposed Payment Supplement Partial Claim.” The draft ML proposes use of available partial claims funds to create a new loss mitigation option to assist struggling borrowers.
Generally, a partial claim is an interest-free subordinate loan issued by
Affirming its commitment to the senior citizen population, on May 17, 2023, the Federal Housing Administration (FHA) issued Mortgagee Letter 2023-10, implementing amendments to the Home Equity Conversion Mortgage (HECM) assignment claim submission criteria.
As a bit of background, a HECM is a reverse mortgage insured by the FHA. HECMs, as any reverse mortgage