The Federal Housing Finance Agency (FHFA) has launched a proposal to repeal its 2024 Fair Lending, Fair Housing, and Equitable Housing Finance Plans rule, citing redundancy with existing regulations and seeking to ease administrative burdens on Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. The move marks a significant shift in housing policy less than two years after the rule was finalized.
A new debate is emerging in Washington as lawmakers push back against a controversial move by Federal Housing Finance Agency (FHFA) Director Bill Pulte, who has instructed Fannie Mae and Freddie Mac to explore the use of cryptocurrency in mortgage underwriting. The initiative would permit borrowers to include crypto assets held on U.S.-regulated exchanges in their financial reserves—even without converting them to dollars—raising alarms among Senate Democrats.
Home equity lending is growing rapidly in the U.S. as more homeowners unlock record levels of home value to fund renovations, consolidate debt, or access liquidity without refinancing their first mortgages. According to the Mortgage Bankers Association, originations of home equity lines of credit (HELOCs) and closed-end second mortgages rose by 7.2% in 2024, with outstanding balances climbing by 10.3%.
FHFA has released detailed responses to lender questions concerning its recent directive expanding the use of VantageScore alongside FICO for mortgage underwriting. These clarifications are meant to smooth integration, maintain data consistency, and address concerns about compliance and operational challenges.
June’s Consumer Price Index (CPI) report likely closed the door on the possibility of a Federal Reserve rate cut in July, as inflation remains more persistent than many had anticipated. The data suggest that monetary policy will stay tighter for longer, leaving borrowers, homebuyers, and markets adjusting their expectations for relief.
The Single Family Handbook 4000.1 changed the name of the Streamline 203(k) program to the “limited program. Properties being reviewed for the 203(k) program that have commercial influences as contained in a Mixed-Use property, One unit must be owner occupied primary unit and the non residential portion of the property cannot exceed 49% of the square footage. The health and safety of the residential units and residents must be of primary concern. If there is a question of the health and safety contact HUD as you would be surprised of the properties HUD has rejected for health and safety concerns.
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 FHA permits only one FHA mortgage at a time for a borrower except for four (4) exceptions.
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 new Single Family Handbook (SFH) 4000.1 has attempted to simplify the program for everyone.
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 past year has seen sweeping changes in almost every area of loan origination, underwriting guidelines, and loan disclosures. USDA and FHA have both created new handbooks that came with completely new guidelines. The CFPB introduced the Loan Estimate and Closing Disclosures which replaced the Good Faith Estimate, TIL, and HUD-1. Fannie Mae and Freddie Mac introduced new guidelines for many topics including review of Schedule-A Unreimbursed Expenses and required reserves for borrowers retaining their home as a secondary or rental property.
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 FHA has announced new standards for Energy Efficient Homes (EEH) with stretched ratios. This is in conjunction with the Department of Energy’s Home Energy Score.
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.
On September 14, 2015 the Single Family Handbook (SFH) 4000.1 becomes effective. A change that most will not pick up is the underwriting of HUD REO’s. For those that are not familiar, a HUD REO is a property that was foreclosed by HUD approved mortgage servicer and the property is now owned by HUD. The term REO means Real Estate Owned. These properties are usually sold at auction.
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.
Over four weeks I gave everyone the FHA changes effective September 14, 2015 unless HUD delays the implementation of the changes again. These changes were originally set to take place on June 15, 2015 but HUD issued a delay to September 14, 2015. HUD has taken away the discretionary methodology in calculating a borrower’s income for a wage earner and/or hourly wage earner. Under the new guidelines an wage earner that is earning a specific income consistently that is the borrower’s income. The underwriter must use the actual income. Borrowers being paid an hourly wage underwriters can use the income shown as long as it is being is being paid consistently. If not consistent then the income must be averaged over a twenty four month (24) month period.
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.
When credit scores are obtainable it must be used to determine eligibility for FHA insured mortgage loans. The scores used are the middle score for a borrower with three scores, or the lower score when a borrower only has two scores. After examining each borrower’s credit in the transaction a decision score must be determined. A mortgage transaction multiple borrowers you must use the middle or lowest score for the borrowers, The decision score determines the loan to value and the pricing of the loan since most mortgages are risk based pricing.
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.
Recently in the news were photographs of different locations in the United States that had an inordinate amount of rain resulting in flooding. In addition numerous tornadoes are hitting various places in the United States and we are now in hurricane season (June 1 to November 30). If a location of the United States is declared a “presidentially declared federal disaster area” and the borrower’s home was materially damaged or destroyed the homeowner and/or tenant(s) can buy another dwelling using the 203(h) section of the act.
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.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.