Written By: Joan Ewing, Op-Ed Writer
Hello Everyone - Are you currently processing loans for a small broker, processing loans on a contract basis, or perhaps working for a direct lender - Do you feel you are always one step behind the latest FHA Updates? While you believe you are processing your loans correctly – only after submission to underwriting you learn that FHA has changed the guidelines and you were not aware. Needless to say you are not happy the loan originator is not happy and you want to know why you were not made aware of the changes.
Well here is an answer to your problem!!!!
Log on to the FHA.GOV website. It let you know everything you always wanted and needed to know about FHA guidelines – underwriting and processing. I would like to suggest the HUD website – make it one of your favorites – you will not be disappointed.
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm
The Mortgagee Letters are the source of all changes and the updated Bible of mortgage processing and underwriting. The Letters are numbered – year first, then the number of the Letter – i.e., 08-34. Check it at least once a week and you could be the most up-to-date processor and looking real smart.
In addition to the Mortgagee Letters on the FHA.GOV web site – there are massive amounts of other information. FHA Limits – Approved Condos – the new guidelines for brokers disclosing yield spread on the HUD1 effective January 1st. There is going to be a new HUD1 which is much easier to read and all one sheet, check it out!!
There is information on home buying, selling, renting, HUD homes for sale, etc. If you are currently working with any borrowers, I would like to suggest you review this website. This web site is a must for everyone who originates, processes, underwrites and closes FHA loans.
There is also a Newsroom – which lists all the most recent HUD announcements. Some may not be happy announcements; however, it can put into perspective the number of homes being foreclosed and exactly what is being done by lenders and servicers to try and eliminate the problem from getting worse.
As originators and processors you are probably getting telephone calls from homeowners who are about to lose their home - there is valuable information regarding housing counseling on the web site. Call some of the local housing counselors in your area and ask – if they have remedies for borrowers facing foreclosure and ask if you can refer customers to them for assistance.
Give the homeowners a list of HUD recognized housing counselors, perhaps their home could be saved. The local housing agencies may be aware of their State funds or programs that are available to help borrowers save their home. Helping an ailing homeowner save their home – could bring you many new loans when the market turns around. People seem to remember those that have helped them.
In closing – I would just like to say – Keep processing. More later
About The Author
Joan Ewing - As an op-ed writer and active FHA DE Underwriter for the past 15 years, Joan Ewing is a proud NAMP® Certified Ambassador Loan Processor (NAMP®-CALP). Joan brings years of FHA Government experience to her writings, letting her readers tap into her underwriting knowledge base.
