Finally - Updated HUD Handbooks with CURRENT Guidelines!

Written By: Stacey Sprain, Op-Ed Writer

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Though I had planned to discuss FACTA this week, HUD recently issued a very important Mortgagee Letter with some long awaited news for all of us so let’s take a break from my series on credit and talk about Mortgagee Letter 2009-14! We’ll pick up right where I left off on the credit series next week.

Earlier in the month, HUD issued ML 2009-14 which announced the newly updated online versions of several HUD Handbooks, including HUD Handbook 4155.1 which is the most important handbook containing FHA credit guidelines. You’ll find the new handbooks at which is a new portal page created by HUD. There are two handbook links available. The first link is for the newly updated 4155.1 Mortgage Credit Analysis for Mortgage Insurance handbook. The second is called the 4155.2 which is actually a consolidated version of three formerly separate handbooks- The 4000.2 Mortgagees Handbook Application through Insurance, the 4000.4 Single Family Direct Endorsement Program and the 4165.1 Endorsement for Insurance for Home Mortgages (Single Family).

The new handbooks will actually be required to be used and the old outdated handbooks will be archived 30 days from the date of the Mortgagee Letter which will be on or around May 9, 2009. To assist users with the transition to the newly formatted online handbooks, HUD created a Q&A sheet which explains how to utilize the search feature and goes on to explain further the best news of all- When Mortgagee Letters are issued going forward, the content will be updated in the handbook in order to keep the content of the new handbooks up to date at all times! Hooray for HUD!

FINALLY they listened to all of the industry complaints and took action to make things easier for all of us. I don’t know about you but I surely appreciate this. It will make things so much easier for originators to access current information, it will make it easier to train processors, to get the right information to borrowers, realtors, … the underwriters don’t have to go digging for Mortgagee Letters when they run across a situation where “I know I read something about this somewhere but have to find what Mortgagee Letter it was in…” This is the best news we’ve gotten in our industry in a long time! I feel like dancing in the streets!

I’ve also noticed that HUD has recently rolled out some web seminars at their Single Family Training and Events website. BUT- one thing to keep in mind about these- HUD’s webinars will give very basic and standard information about FHA guidelines. You will still get the most benefit from more personalized and specifically structured sessions such as those offered by FHAOnline University which offers sessions on specifically targeted Subjects such as the 203k Rehab Program, HECM Reverse Mortgages, FHA Underwriting, FHA/VA Processing, FHA Direct Endorsement Underwriting and FHA/VA Closing for Closers.

I am also very impressed by HUD’s continued efforts to build site. They are constantly adding new information that can be accessed and used to educate potential homebuyers, existing homeowners, realtors, and other industry members. FHA is on You Tube, Face book, Twitter; they’re all over the place! I greatly appreciate the efforts being made by HUD to “get out there” and to promote the education of the average consumers across the country. They are definitely working hard to move us all into the future and to promote education and training in the housing industry. I can’t think of anything more important in our country these days. Let’s give a round of applause for the Department of Housing and Urban Development! Way to go HUD!

Need FHA Training? CLICK HERE:

About The Author

Stacey Sprain - As an op-ed writer, Ms. Stacey Sprain is currently a NAMP® Certified Ambassador Loan Processor (NAMP®-CALP). With over 15+ years of mortgage banking experience, Stacey is also a Quality Control Manager for a major mortgage lending institution. 


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.