HUD, Ginnie, FHA, VA news and investor changes
___________________________________________________
HUD announced the submission of a final rule (Reinstatement of HUD’s Discriminatory Effects Standard) which would rescind the agency’s 2020 regulation governing Fair Housing Act (FHA or the Act) disparate impact claims and reinstate the agency’s 2013 discriminatory effects rule. Explaining that “the 2013 rule is more consistent with how the [FHA] has been applied in the courts and in front of the agency for more than 50 years,” HUD emphasized that it also “more effectively implements the Act’s broad remedial purpose of eliminating unnecessary discriminatory practices from the housing market.”
FHA issued a reminder to servicers, FHA INFO 2023-19, about the use of the U.S. Department of the Treasury’s Homeowner Assistance Fund (HAF) financial assistance to help borrowers, with FHA-insured single family forward mortgages and Home Equity Conversion Mortgages (HECM), struggling with their mortgage.
FHA published in the Federal Register (FR), Mortgagee Review Board: Administrative Actions [Docket No. FR-6379-N-01]. This FR Notice is the annual notification of all completed administrative actions taken by the Department of Housing and Urban Development’s (HUD) Mortgagee Review Board from October 1, 2021, through September 30, 2022, where settlement agreements have been reached, civil money penalties were imposed, or FHA participation was terminated as of February 21, 2023.
On March 24, USDA Rural Development posted updates to FY 2023 Area Loan Limits and related changes.
A Proposed Rule was published in the Federal Register to amend the Single-Family Housing Guaranteed Loan Program (SFHGLP) regulation to implement changes related to the use of special servicing options for non-performing loans. Rural Development invites the public to submit comments on all aspects on the proposed rule. Comments to the proposed rule may be submitted via the Federal eRulemaking Portal located at www.regulations.gov. While the public comment period is open for 60 days, RD encourages all interested parties to submit comments as soon as feasible. Comments must be submitted on or before March 28, 2023.
Recently, the VA announced the effective dates for both Circulars 26-23-03 and 26-23-04 are revised. The required updated forms are now effective for loan applications taken on or after April 1, 2023. See AmeriHome Product Announcement 20230211-CL for details.
Per PennyMac announcement 23-09 – VA Circulars 26-23-03 & 26-23-04: Updates to VA Forms, Pennymac is aligning with the updates to the VA forms announced in VA Circulars 26-23-03 and 26-23-04. The VA issued both circulars on 1/17/2023 with a mandatory effective date of loan applications on or after 2/1/23. The MBA has reached out to the VA regarding the implementation timeline on the forms and are waiting for a response. If the VA does extend the effective date, Pennymac will align with those changes. Pennymac has confirmed that a couple of the major document providers expect to have the required form updates deployed by 2/1/2023. Clients should contact their document/form provider to confirm readiness of the required VA form updates within the VA’s required timeline.
United Wholesale Mortgage (UWM) expanded its One-Time Close New Construction product to include VA. The one-time close product provides LOs with a unique opportunity to generate new business and build referral partnerships with builders and real estate agents. There is only one full credit report to order, one down payment, one closing and one interest rate, with the option to modify down if the market improves once construction is complete. UWM works through the process every step of the way.
With Circular 26-23-06, the Veterans Administration (VA) announced a reduction to VA funding fee rates for purchase, construction, and cash-out refinance transactions, effective for loans closed on or after April 7, 2023. See AmeriHome Mortgage Product Announcement 20230306-CL for details.
Citizens Correspondent National Bulletin 2023-08 includes information on FHA and VA Product Updates.