----- FHA RESOURCE CENTER BULLETIN BOARD -----
New FHA Mortgagee Letters
FHA Mortgagee Letter 13-03
Published: January 31, 2013
Subject: Extension of Implementation Date for Mortgagee Letter 2012-22, Revisions to FHA’s Loss Mitigation Home Retention Options
Purpose: The primary purpose of this Mortgagee Letter is to: (1) notify mortgagees that the implementation date for Mortgagee Letter 2012-22 has been extended to March 15, 2013; and (2) clarify questions HUD received from the industry regarding the proper implementation of Mortgagee Letter 2012-22. If a foreclosure sale did not occur as of December 16, 2012, mortgagees are supposed to evaluate the mortgagor under the revised waterfall in Mortgagee Letter 2012-22, Appendix A, prior to completing a foreclosure sale.
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FHA Mortgagee Letter 13-05
Published: January 31, 2013
Subject: Manual Underwriting for Loans with Decision Credit Score Below 620 and Total Fixed Payments to Effective Income Ratio Exceeding 43.00%
Purpose: This Mortgagee Letter revises the procedures for underwriting loans where the borrower has a decision credit score below 620 and the Total Fixed Payments to Effective Income (debt-to-income) ratio exceeds 43.00%. Transactions where the borrower has a decision credit score below 620 and the debt-to-income ratio exceeds 43.00% must be manually underwritten. HUD expects that by the effective date of this Mortgagee Letter HUD’s Technology Open To Approved Lenders (TOTAL) scorecard will be issuing scoring recommendations of Refer for loans where the borrower has a decision credit score below 620 and the debt-to-income ratio exceeds 43.00%. However, if the loan receives a scoring recommendation of Accept from HUD’s TOTAL scorecard, the loan must be manually downgraded to a Refer scoring recommendation
Effective Date: This Mortgagee Letter is effective for case numbers assigned on or after April 1, 2013.
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FHA Mortgagee Letter 13-06
Published: January 31, 2013
Subject: Extension of Disaster Moratorium and Suspension of Evictions for Specified Properties Impacted by Hurricane Sandy
Purpose:
· Extension of Foreclosure Moratorium: As indicated in Mortgagee Letter 2012-23, HUD requires a moratorium on foreclosures of properties in Presidentially-Declared Major Disasters for a ninety (90) day period from the date of each Disaster Area declaration. The moratorium applies to the initiation of foreclosures AND foreclosures already in process. Due to the extensive damage caused by Hurricane Sandy, HUD is extending the foreclosure moratorium for an additional 90 days in only those counties that U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) has declared to be eligible for individual assistance (Affected Counties). The moratorium extension in the Affected Counties applies to the initiation of foreclosures AND foreclosures already in process. Information on Hurricane Sandy Affected Counties can be obtained from the FEMA website at: www.fema.gov or by calling the local FEMA office. Mortgagees should also direct affected borrowers with additional questions to FHA’s “Disaster Relief Options for FHA Homeowners” page, which may be accessed via the following link: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/qaho0121.
· Suspension of Evictions: Evictions of persons from properties secured by FHA mortgages are suspended for properties located in Affected Counties until April 30, 2013.
To see all FHA Mortgagee Letters visit: http://bit.ly/HUDml
