On February 22, 2023, the U.S. Department of Housing and Urban Development (“HUD”) announced a 30 basis point reduction to the annual mortgage insurance premium charged to borrowers with FHA-insured mortgages. HUD estimates that this reduction will have a significant...
Client & Friends Memo
Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
FHA Revises Conflict of Interest and Dual Employment Policies
On December 15, 2022, the FHA issued Mortgagee Letter 2022-22 (the “Mortgagee Letter”) amending FHA’s policies with respect to dual employment and conflicts of interest. Most notably, the Mortgagee Letter outlines changes to the Single Family Housing Policy Handbook...
FHA Mortgagee Letter 2022-17 Rental History for First-time Homebuyers
On September 27, 2022, FHA issued the above Mortgages Letter (ML 2022 -17) to provide guidance to lenders regarding the introduction of positive rental history for First Time Homebuyers on forward purchase transactions. To recognize such positive credit...
Mortgagee Letter 2022-09 Update for COVID-19 Related Economic Event
On July 7, 2022, the Federal Housing Administration (FHA) issued updated Mortgagee Letter 2022-09 (ML 2022-09) that will allow FHA lenders to utilize flexible underwriting guidance to qualify borrowers for home ownership using FHA-insured mortgage financing if those...
FHFA Includes Rental Payment History in Fannie Mae’s Underwriting Process
In an August 11, 2021 News Release, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae will consider rental payment history in its risk assessment processes. See FHFA News Release below: Full Memorandum
FHFA Eliminates Adverse Market Refinance Fee
Allows certain borrowers to save more money when refinancing Washington, D.C. – Today, to help families reduce their housing costs, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will eliminate the Adverse Market...
FHA Updates Handbook 4000.1 Section III, Servicing and Loss Mitigation
On April 19, 2021, the Federal Housing Administration (FHA) announced the publication of its update to the Servicing and Loss Mitigation section of the FHA Single Family Housing Policy Handbook 4000.1 (04/19/21). This update streamlines many standard operational...
FHA Announces New Single Family Loan Limits for 2021
On December 2, 2020, the Federal Housing Administration (FHA) announced its new schedule of loan limits for calendar year 2021 for Single Family Title II forward mortgages in Mortgagee Letter 2020-41 and for Home Equity Conversion Mortgages in Mortgagee Letter...
Private Flood Insurance for FHA-Insured Mortgages
In the November 23, 2020, issue of the Federal Register (85 FR 74630, click here), HUD published a proposed rule, with a request for public comment, that would amend FHA regulations to allow mortgagors the option to purchase private flood insurance on FHA-insured...
Fair Housing Act Disparate Impact Regulation Revised
Revised 10/28/2020 In the September 24, 2020, issue of the Federal Register (85 FR 60288, click here), the Department of Housing and Urban Development (HUD) published a Final Rule that amends the disparate impact standard regulation in 24 CFR §100.500 (“2013 Rule”) to...