NEWS AND UPDATES

TO: All FHA-Approved Mortgagees, FHA Roster Appraisers, 203(k) Consultants, and Housing Counselors

In this Announcement:

*        The Federal Housing Administration (FHA) Publishes Additional Sections of its Single Family Housing Policy Handbook (SF Handbook; HUD Handbook 4000.1):

-     Doing Business with FHA-Lenders and Mortgagees; Doing Business with FHA-Other Participants in FHA Transactions - Appraisers

-     Quality Control, Oversight, and Compliance-Lenders and Mortgagees; Quality Control, Oversight, and Compliance-Other Participants in FHA Transactions - Appraisers

-     Origination through Post-Closing/Endorsement for Title II Forward Mortgages (Origination through Endorsement) Appraiser, 203(k) and 203(k) Consultant Sections

*        Additional Updates to Origination through Endorsement

*        Industry Briefing Conference Call March 26, 2015

See below for details.

FHA Publishes Additional Sections of its Single Family Housing Policy Handbook (SF Handbook; HUD Handbook 4000.1)

Today, the FHA achieved another milestone for its SF Handbook, with new sections now available that finalize a significant portion of the SF Handbook development work. The additions further the goal of achieving a single, comprehensive source of Single Family Housing policy that will help mortgagees and other participants in FHA transactions expand access to mortgage credit and make it easier to do business with FHA.  The March 18, 2015 SF Handbookis now available on HUD's Client Information Policy Systems (HUDCLIPS) web page.

Future FHA SF Handbook Site

Future SF Handbook updates and additions will be accessible, along with the entire SF Handbook, on a new FHA SF Handbook site being developed with AllRegsฎ. This SF Handbook site will contain an organizational structure, search, archive, change identification and other features similar to what users can find today on the AllRegs site. FHA will announce this site's availability when development work is completed in the coming weeks.

Doing Business with FHA, and Quality Control, Oversight, and Compliance Sections and Other Participants in FHA Transactions - Appraisers Section

Two new sections of the SF Handbook: (1) Doing Business with FHA-Lenders and Mortgagees (Doing Business)and, (2) Quality Control, Oversight, and Compliance-Lenders and Mortgagees (Oversight and Compliance) cover the requirements for doing business with, and compliance standards for, FHA-approved mortgagees.  FHA also published its Doing Business with FHA-Other Participants in FHA Transactions - Appraisers, and its Quality Control, Oversight, and Compliance-Other Participants in FHA Transactions - Appraisers sections. These sections cover the requirements for doing business with, and compliance standards for appraisers. Policies in the Doing Business sections are effective on June 15, 2015. Policies in the Oversight and Compliance-Lenders and Mortgagees section are effective on June 15, 2015, except the section noted in the SF Handbook March 18 Transmittal. Policies in the Oversight and Compliance-Other Participants - Appraisers section become effective for case numbers assigned on or after June 15, 2015.

The time period between the publication date and the effective date is for FHA stakeholders to implement changes to their systems and operational processes, if necessary. Other sections of Doing Business-Other Participants, and Quality Control, Oversight and Compliance-Other Participants will publish in the future.

New Origination through Endorsement Sections for Appraisers and 203(k) Consultants

In addition to the newly published Doing Business, and Oversight and Compliance sections, today FHA published most of the remaining components of the SF Handbook's Origination through Post-Closing/ Endorsement for Title II Forward Mortgages (Origination through Endorsement) section:

• 203(k) Rehabilitation Mortgage Insurance Program policies
• 203(k) Consultant requirements
• Appraiser and Property Requirements for Title II Forward and Reverse Mortgages

Publishing these sections essentially completes the Origination through Endorsement section for Title II forward mortgages. The two outstanding sections, Condominium Project Approvals and HUD Real Estate Owned Properties, when finalized, will complete consolidation of Title II forward mortgage origination policy into this single, authoritative source. 

Read more about the newly published Origination through Endorsement sections, effective for FHA case numbers assigned on or after June 15, 2015, in our online article.  Although technically not part of the SF Handbook, today FHA also published its Single Family Housing Appraisal Report and Data Delivery Guide,which is used in concert with certain SF Handbook sections.

Self-paced, recorded training modules for each section of Origination through Endorsement, including those listed above, will be available on HUD's Single Family Archived Webinars web page on April 30, 2015. 

Origination through Endorsement Update Incorporates Recent Policy Changes

FHA has updated its Origination through Endorsement section published on September 30, 2014 to incorporate revisions and recently announced policy changes issued through Mortgagee Letters.  The SF Handbook March 18, 2015 Transmittal-the first several pages of the SF Handbook document-posted today on HUDCLIPS, includes:

• The incorporated changes and their location within the SF Handbook.
• A list of Mortgagee Letters, Handbooks, and Housing Notices that will be superseded in whole, or in part, by the policies in its Origination through Endorsement section when the section becomes effective for case numbers assigned on or after June 15, 2015.  The Mortgagee Letters, Handbooks, and Housing Notices to be superseded will remain accessible on HUDCLIPS.

Quick Links

• View the updated SF Handbook, dated March 18, 2015, on HUDCLIPS at: http://portal.hud.gov/hudportal/documents/huddoc?id=40001HSGH.pdf
• Access updated information for mortgagees on the SF Handbook page on HUD.gov at:  http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/handbook_4000-1
• View the Single Family Archived Webinars page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/events/sfh_webinars
• View the FHA Single Family Housing Appraisal Report and Data Delivery Guide at: http://portal.hud.gov/hudportal/documents/huddoc?id=SFH_POLI_APPR_RPT_FIN.PDF
• Access the online article, "New Sections for Appraisers and 203(k) Essentially Complete the FHA Single Family Housing Policy Handbook (SF Handbook; HUD Handbook 4000.1) Origination through Endorsement Section", at: http://portal.hud.gov/hudportal/documents/huddoc?id=SFH_HB_MORE_APPR.PDF

• View the Single Family Handbook Frequently Asked Questions at: http://portal.hud.gov/hudportal/documents/huddoc?id=SFH_HB_4000-1_FAQS.PDF   

Resources

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Contact the FHA Resource Center:

• Visit our online knowledge base to obtain answers to frequently asked questions 24/7 atwww.hud.gov/answers.
• E-mail the FHA Resource Center atanswers@hud.gov. Emails and phone messages will be responded to during normal hours of operation, 8:00 AM to 8:00 PM (Eastern), Monday through Friday on all non-Federal holidays. 
• Call 1-800-CALLFHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Information Relay Service at 1-800-877-8339.

RESOURCE INFORMATION