FHA Streamline changes

FHA has changed their guidelines effective with case numbers assigned on or after 11/18/09. Some of the major changes are:

• Seasoning Requirements – the borrower must have made at least 6 payments on the FHA-insured mortgage being refinanced

• Lender must determine there is a net tangible benefit as a result of the streamline (details are on the worksheet)

• Lender must certify that the borrower is employed and has income (income amount does not need to be verified)

• Funds to close must now be documented

• Lender must enter the credit score into FHA Connection

• Loan amount calculations have changed. You can no longer include closing costs and prepaids for the new loan on a Streamline Refinance WITHOUT an Appraisal. You can include closing costs and prepaids for the new loan on a Streamline Refinance WITH an Appraisal. However, you cannot include discount points

The changes were announced with Mortgagee Letter 2009-32.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

HUD revises 4155 and 4000 Handbooks

FHA announced last week the new online HUD Handbooks 4155.1, Mortgage Credit Analysis for Mortgage Insurance; and 4155.2, Lender’s Guide to Single Family Mortgage Insurance Processing. The online Handbook 4155.1 replaces Handbook 4155.1 REV-5, Mortgage Credit Analysis for Mortgage Insurance, One to Four Family Properties. The online Handbook 4155.2 replaces three handbooks 4000.2 REV-3, Mortgagees' Handbook, Application through Insurance; 4000.4 REV-1, Single Family Direct Endorsement Program; and 4165.1 REV-2, Endorsement for Insurance for Home Mortgage Programs (Single Family).

If they are true to their past history I am sure once we have read this there are numerous changes.

You can access it by clicking here


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

New form required on FHA Appraisals April 1, 2009

Mortgagee letter 09-2009TO: ALL APPROVED MORTGAGEES, ALL FHA ROSTER APPRAISERSSUBJECT: Adoption of Market Conditions Addendum (Fannie Mae Form 1004MC/Freddie Mac Form 71) and Appraisal Reporting Requirements for Properties located in Declining MarketsCurrently, all Federal Housing Administration (FHA) Roster Appraisers are required to report on housing trends in the Neighborhood section of the applicable property specific appraisal reporting form. The Uniform Standards of Professional Appraisal Practice (USPAP) mandate that an appraiser maintain documentation necessary to support all analyses, opinions and conclusions for each appraisal assignment in a work file. In order to ensure greater transparency and accuracy of appraisals performed for FHA-insured financing, FHA will adopt the Market Conditions Addendum (Fannie Mae Form 1004MC/ Freddie Mac Form 71, released November 2008). For all appraisals of properties that are to be security for FHA-insured mortgages and that are performed on or after April 1, 2009, the appraisal must include the Market Conditions Addendum…
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

FHA issues Mortgagee Letter annoucing maximum cash out 85%

FHA issues a new mortgagee letter annoucing the new maximum cashout for refiances FHA loans is 85%. Go to http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

FHA Increases Loan Limits

FHA Loan limits increase http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-07ml.doc


All other counties would remain at the 271,050

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

FHA Increases Loan Limits

FHA Loan limits increase http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-07ml.doc


All other counties would remain at the 271,050

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

Loan Amount Calclulation Worksheets for FHA Loans

FHA has revised their loan amount calculation worksheets. You can go to my blog and print off the Work Sheet 1 Rate and Term, Work Sheet 2 Cash out , Work Sheet 3 Streamline without an appraisal , Work sheet 4 Stream line with an appraisal as well as the Purchase work sheet


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com

HUD issues email alert

HUD issues email
1-FHA Industry Call: Maximum Mortgage Calculation: Wednesday, January 28th at 2 pm, FHA will provide a comprehensive review of the maximum mortgage calculation for all mortgage products, including purchase loans, all types of refinances, and 203(k). Materials will be provided the week of the call. The call-in number is 202-866-207-0413 and the ID number is 81608101.

2. 203(k) and Streamlined (k) Maximum Mortgage Calculation Clarification:The new cash investment requirements for all FHA case numbers assigned on or after January 1, 2009 also applies to the calculation of the loan amount for Section 203(k) and Streamlined (k) loans. Until the new 203(k) Maximum Mortgage Worksheet, form HUD-92700 is posted, please use the following guidance to modify the existing worksheet. As stated in Mortgagee Letter 2008-23, the Loan-to-Value (LTV) for 203(k) loans may exceed 100% of the appraised value. Modifications have been made to the existing worksheet and will be posted upon completion of the clearance process.“Form HUD-92700 203(k) and

Streamlined (k) Maximum Mortgage Worksheet: Mortgage Calculations for Purchase Transactions (Section C)Line C1 stays the sameLine C2 stays the sameLine C3 stays the sameLine C4:Mortgage Amount = Sum of C3 +(-) Required Adjustments (Note 4) ($__________) LTV Factor (96.5%) (Owner-Occupant) or Less Allowable Down Payment/HUD Owned Property ($__________) (Note 5)Line C5:Statutory Investment Required (C3 x 3.5%)Line C6:Actual Cash Investment Required (C3 + A5 minus C4 ($__________) (This figure must be equal to or greater than C5; if less, an adjustment must be made to C4 to ensure a 3.5% investment Mortgage Calculations for Refinance Transactions (Section D)Line D1 stays the sameLine D2 stays the sameLine D3: D2 ($__________) x LTV Factor (97.75%) (Owner-Occupant)Line D4: Maximum Mortgage Amount is the Lesser of D1 or D3 (Note 5) Line D5 stays the same”

3. Clarification to Requirements of Mortgagee Letter 2008-40: Cash-Out Refinance Transactions:On page 5, all of the requirements listed under the heading “Additional underwriting and eligibility criteria” are applicable to all cash-out refinance transactions where the LTV exceeds 85%

4. Streamlined Refinance Transactions at 2008 Economic Stimulus Loan Limits:FHA will permit loans originated under the 2008 loan limits to be refi-ed at mortgage amounts that exceed the current 2009 (and future) geographic loan limits. For streamlines with appraisals or full refinances, the mortgage amount may exceed the current geographic limit so long as:the new loan amount (without MIP) does not exceed the prior case loan amount and the new appraised value supports the loan amount and the LTV is not greater than 97.75%.


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.mtgview.blogspot.com or www.dutips.blogspot.com