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 Resources ญญญญญญญญญญญญญญญญญ 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
Mortgage Bankers Association origination and interest rate forecast for Quarters 1 to 4, 2015 ($ billion) - declining originations
My comments: Work hard to make money while you can. Make sure you provide good service to your best clients so they may remember you when appraisals decline. Remember those clients who drop their fees and give you a lot of hassles. Be ready to drop them.
MBA predicts that originations will peak in Quarter 2, and then decline. But, of course, economic forecasts are somewhat iffy ;>
Q1 Q2 Q3 Q4
$294 $338 $318 $272
Interest rates are forecast to increase, the main reason for forecasted declines in originations.
Q1 Q2 Q3 Q4
3.7% 4.0% 4.4% 4.6%
My comments: Why have loan apps dropped? I think it is because there is lots of speculation about the Fed increasing interest rates. This index is excellent for predicting declines in appraisals as loan applications are taken before appraisals are ordered. I have been hearing from appraisers that the frantic frenzy of work has slowed down. Many appraisers have been turning down work and increasing fees. Now, appraisers will be turning down less work and fees will start to decline again. The inevitable boom and bust of mortgage lending.
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Mortgage Applications Decrease in Latest MBA Weekly Survey - down 3.9% from one week earlier
WASHINGTON, D.C. (March 18, 2015) - Mortgage applications decreased 3.9 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending March 13, 2015.
The Market Composite Index, a measure of mortgage loan application volume, decreased 3.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4 percent compared with the previous week. The Refinance Index decreased 5 percent from the previous week. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 1 percent compared with the previous week and was 1 percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 59 percent of total applications, the lowest level since October 2014, from 60 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.5 percent of total applications.
The FHA share of total applications increased to 14.3 percent this week from 14.0 percent last week. The VA share of total applications decreased to 10.3 percent this week from 10.8 percent last week. The USDA share of total applications increased to 0.9 percent this week from 0.8 percent last week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.99 percent from 4.01 percent, with points increasing to 0.40 from 0.39 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.94 percent from 4.02 percent, with points increasing to 0.33 from 0.27 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.74 percent from 3.80 percent, with points decreasing to 0.12 from 0.20 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.28 percent from 3.29 percent, with points increasing to 0.34 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.
The average contract interest rate for 5/1 ARMs decreased to 2.99 percent from 3.18 percent, with points increasing to 0.43 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
If you would like to purchase a subscription of MBA's Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact mbaresearch@mba.org or click here.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, REITs, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site: www.mba.org .
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