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In the December 14, 2018, issue of the Federal Register (83 FR 64269, click here) HUD published a final rule (“Rule”), effective...

This memorandum is for clients that originate FHA HECM reverse mortgages. On October 22, 2018, the FHA issued Mortgagee Letter...

This memorandum is for clients that originate FHA HECM reverse mortgages. On September 28, 2018, the FHA issued Mortgage Letter...

In the February 17, 2015 issue of the Federal Register (80 FR 8243, click here) the Department of Housing and Urban Development (HUD) announced the 2015 points and fees threshold for FHA qualified mortgages by adopting the Consumer Financial Protection Bureau’s August 14, 2014 final rule amending the qualified mortgage points and fees limit for 2015 (see our August 19, 2014 memorandum, click here).

Effective for case numbers assigned on or after January 26, 2015, FHA Mortgage Letter 2015-01 (ML 2015-01) reduces annual MIP rates for FHA Title II forward mortgages and provides FHA lenders the opportunity for cancellation of existing case numbers in order to utilize the MIP rates contained in ML 2015-01.

On December 5, 2014, FHA published the above Mortgagee Letter (click here) that provides notice of FHA’s single family housing loan limits for Title II forward mortgages and home equity conversion mortgages (HECMs) effective for case numbers assigned on or after January 1, 2015. Below is a brief summary of ML 2014-25:

In the August 26, 2014, Federal Register (79 FR 50838), the Federal Housing Administration (FHA) published a final rule (click here) that revises two FHA single family adjustable rate mortgage (ARM) regulations. The final rule revises §203.49(d)(2) to require that an interest rate adjustment resulting in a corresponding change to the mortgagor’s monthly payment for a FHA-insured ARM have a 45-day look-back period.

In the August 26, 2014, Federal Register (79 FR 50835), the Federal Housing Administration (FHA) published a final rule (click here) that effective for FHA-insured mortgages closing on or after January 21, 2015, revises FHA’s regulations to prohibit an FHA approved mortgagee from charging the mortgagor interest through the end of the month in which the mortgage is being prepaid, allowing them instead to charge interest only through the date the mortgage is prepaid, and prohibits the charging of interest beyond that date.

In the March 13, 2014, Federal Register (79 FR 14200), the Federal Housing Administration (FHA) published a proposed rule (click here) to revise FHA’s regulations to prohibit an FHA approved mortgagee from charging the mortgagor interest through the end of the month in which the mortgage is being prepaid, allowing them instead to charge interest only through the date the mortgage is prepaid. This proposed change to FHA prepayment regulations is in response to the Ability-to-Repay and Qualified Mortgage regulations (ATR/QM Rule) issued by the Consumer Financial Protection Bureau (CFPB), which became effective January 10, 2014. The ATR/QM Rule defines “prepayment penalty” in closed-end transactions as “a charge imposed for paying all or part of the transaction’s principal before the date on which the principal is due.” The ATR/QM Rule specifically excludes a post-payment interest charge currently allowed by FHA regulations as a prepayment penalty for FHA loans consummated before January 21, 2015. However, for FHA loans closed on or after January 21, 2015, a post-payment interest charge will be considered a prepayment penalty by the ATR/QM Rule, thus making it necessary for FHA to amend its regulations.

Effective with the November 13, 2013, issuance of Mortgagee Letter 2013-41 (ML 2013-41) by the FHA, all Single Family FHA-approved lenders must self-report to FHA in accordance with the guidance set forth in ML 2013-41. The self-reporting requirements in ML 2013-41cover the following: