FHA News

FHA News : Moving “Back to the Future”

Written By: Stacey Sprain

For those of you like myself who are industry veterans, perhaps you remember the “good ol’ days” back when we had to hand-type all of our loan application forms, verifications, settlement documents, truth-in-lending, good faith estimates, … And do you remember those old fashioned perforated HUD and VA forms that we had to hand-type and separate? It sure seems like a lifetime ago doesn’t it?


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.

The Importance of Validating the Seller’s Identity

Written By: Stacey Sprain

With the challenges in our industry today, it’s more important than ever to verify and validate data within each loan application file. Many investors are no longer even honoring limited documentation options offered with AUS approvals and instead are requiring minimum documentation standards for verifying and validating income and assets.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.

Standard FHA Processor Duties-GSA checks

Written By: Stacey Sprain

One of the standard FHA processor responsibilities is obtaining GSA checks on all FHA loans. But what on earth are these things and what do they mean? Let’s take a closer look at these lists. GSA stands for General Services Administration which is the federal agency that provides the EPLS listing. EPLS stands for Excluded Parties Listing System.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.

FHA- Busy New Week!

Written By: Stacey Sprain

This week brought forth lots of action on the FHA-front once again. Let’s take a close look at all the news this week and how it may and will affect the origination and processing of FHA loans.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.

FHA News : HUD Issues Final Condo Policy Decisions

Written By: Stacey Sprain

The anticipated guidance from HUD in regards to the final Condo Policy finally arrived last week in the form of two Mortgagee Letters. ML 2009-46B, which replaces the previously issued ML 2009-19 and ML 2009-46A which communicates additional temporary guidance on a number of topics.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.

FHA News : Updates on FHA Condominium Changes

Written By: Stacey Sprain

Updates on FHA Condominium Changes Since last week’s article, I’ve learned of additional information you may find helpful as we all wait to hear from HUD on revisions to Mortgagee Letter 2009-19.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.

FHA News : National Flood Insurance Program Authorization Expires!

Written By: Stacey Sprain

As of midnight on March 28, 2010 the NFIP’s authorization has expired. Congress did not act to extend the NFIP’s authorization before the deadline date, so the Program will not be allowed to operate at least until Congress resumes session after the Easter Break on April 12th.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.

FHA News : Lots Of Action On FHA With New Mortgagee Letters And On Capitol Hill!

Written By: Stacey Sprain

It’s been a busy few weeks on the FHA-Front with the release of several Mortgagee Letters as well as movement on the FHA Reform Bill on Capitol Hill in Washington. Let’s review: Mortgagee Letter 2010-13-Appraisal Update and/or Completion Report (Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005)


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.

Who is FHA? When and Why Did They Get Into Mortgage Insurance?

Written By: Joan Ewing 

Hello Everybody – Another week in the mortgage industry is here and I am sure everyone uses the acronym FHA quite a few times a week. However, do we really know anything about FHA, when they were created, why they were created and what they really do? Who is FHA?


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.

Compensating Factors for FHA Manual Underwrites

Written By: Stacey Sprain

FHA uses a standard ratio guideline of 31/43 for files that do not receive automated approval or for files where borrowers have insufficient credit or no credit to obtain AUS approval. 


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.