HUD: FHA INFO #19-53: Single Family Housing Policy Handbook 4000.1 Updated

HUD: FHA INFO #19-53: Single Family Housing Policy Handbook 4000.1 Updated

Investor Update
October 24, 2019

Source: HUD

Additional Resource:

FHA Single Family Housing Policy Library (Handbook 4.000.1 Transmittal 10/24/19)

Today, the Federal Housing Administration (FHA) published the quarterly update to its Single Family Housing Policy Handbook 4000.1 (SF Handbook). This publication updates and clarifies FHA’s servicing and claims policies, and includes additional updates to other sections of the SF Handbook.

The servicing and claims updates include:
• Revised guidance for FHA-Home Affordable Mortgage Program (FHA-HAMP) Trial Payment Plan (TPP) terms, including the requirement for TPP Agreement documents to stipulate the causes of TPP failure; and to clarify when the Mortgagee is required to waive late charges for instances when a Borrower is on, or is paying, its agreed upon Loss Mitigation Option.
• Clarification of the Property and Preservation timeframe requirements for securing and maintaining vacant properties.
• Clarification that Supplemental Claims for reconveyance must be submitted within six months of the final settlement date of the reacquisition claim.
• Restructured FHA’s Loss Mitigation Options for Borrowers in a Presidentially-Declared Major Disaster Area (PDMDA) per Mortgagee Letter 2019-14.

In addition, today’s update also includes:
• Incorporation of the Maximum Loan-To-Value and Combined Loan-To-Value Percentages for Cash-Out Refinance Mortgages per Mortgagee Letter 2019-11.
• Updates to the Condominium sections under “Required Documents” to incorporate reference to the newly approved HUD forms.

All stakeholders in FHA transactions should review and become familiar with the changes outlined in the SF Handbook Transmittal — as found on HUD’s Client Information Policy Systems’ (HUDCLIPS) Housing Handbooks web page. For reference, a version of the SF Handbook with highlighted text changes is also available and can be accessed from the SF Handbook Information Page.

Effective Dates
• Unless noted otherwise in the transmittal, previously announced effective dates are not impacted by these SF Handbook changes.
• SF Handbook changes identified in Section II of the Transmittal may be implemented with the original effective date of October 15, 2019, but must be implemented for case numbers assigned on or after January 2, 2020.
• Changes identified in Section III and IV may be implemented immediately, but must be implemented no later than January 2, 2020.

Quick Links
• Review the October 24, 2019 SF Handbook 4000.1 Transmittal at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh
• Access the online and/or portable document format SF Handbook 4000.1 from HUDCLIPS Housing Handbooks web page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh
• View the redline version of the SF Handbook at: https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1

Resources
Contact the FHA Resource Center:
• Visit our online knowledge base to obtain answers to frequently asked questions 24/7 at: www.hud.gov/answers.
• E-mail the FHA Resource Center at: answers@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 Relay Service at 1-800-877-833