On Increasing FHA Mortgage Limits

With the New Year now begun, mortgage professionals may be heading into 2008 with an interested in FHA mortgage limits for their area. According to HUD, interested parties may submit requests to HUD for mortgage limits to be increase. These requests must be complete with the appropriate housing sales price data for analysis and justification of the requested limit increase. All documents for mortgage limit increases must be submitted to your state homeownership center. The 2007 FHA Mortgagee Letter, as well as more information on how to begin the process, can be read at http://www.hud.gov/offices/hsg/mltrmenu.cfm.

Interim Rule on Home Equity Conversion Mortgages

Effective February 7, 2008 will be an interim rule on Home Equity Conversion Mortgages for maximum credit and eligibility regarding discounted mortgage insurance premium. According to HUD, this rule extends to certain refinanced HECM (Home Equity Conversion Mortgage) Loans, and makes two technical changes to the current HECM program. These include an extension on the date for underwriters in calculating maximum claim amounts in the HECM program from the date of the receipt of the appraisal report to the date of closing. This change will result in a date that is both more easily identifiable and verifiable. Furthermore, the rule corrects for HECM loans that are not in default being assigned anyway to regulatory provisions, and remain in effect, but are not eligible for refinancing with a discounted initial mortgage insurance premium (MIP), which was an unintentional consequence of the previous rule. Instead, the current rule will permit these HECM loans to be refinanced, and thus eligible for the discounted initial MIP. This interim rule will improve the financial situation of elderly homeowners, and therefore compliments the goals of the HECM program.

To read the complete new interim rule, please visit: http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/E8-32.pdf

New Rule on Appraiser Roster Requirements

According to HUD, a new rule regarding Appraiser Roster Requirements will be effective February 7, 2008. This new rule will allow for the requirements for applicants to the FHA Appraiser roster to adhere to the established HUD practices and existing nationwide industry practice. Creating this final rule has codified HUD’s practices, as well as national practices, so that certification and licensing adhere to the national criteria for experience, education, and successful completion of a state-administered exam. In past years, appraisers were also required to pass a HUD test on FHA appraisal methods and reporting. This test will now become obsolete, as it simply duplicated the mandatory and already existing state-administered examination.

The Appraiser Roster creates a list of appraisers who are registered to perform the necessary appraisals of properties that are designed as security placement for FHA-insured single-family mortgages. The requirements for the Appraiser Roster include that the applicant be a state-licensed or state-certified appraiser, and have also passed the HUD examination on FHA appraisal reporting and methods.

For the complete details on this new rule, please visit: http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/08-8.pdf