FHA Mandates Reporting Former REO Status for HECM Purchase

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Starting this week, Federal Housing Administration lenders will be required to note and record when a mortgage transaction has been previously sold as Real Estate Owned property, including Home Equity Conversion Mortgage for Purchase transactions that involve former REOs. “Effective Saturday January 14, 2012 lenders will be required to indicate whether a purchase transaction was previously sold as a Real Estate Owned (REO) property and if so, a previous REO case number will be required at case number assignment in FHA Connection,” the Department of Housing and Urban Development notice states.

To read the entire article, please visit:
http://reversemortgagedaily.com/2012/01/11/fha-mandates-reporting-former...

SOURCE: Published by NAMP® Publishing Group, a division of the National Association of Mortgage Processors (NAMP) (http://www.mortgageprocessor.org)