Entries Tagged as 'Appraisals'

HUD Issues Hope for Homeowners Origination Guidance

The Department of Housing and Urban Development has issued Mortgagee Letter 08-29, “Hope for Homeowners Origination Guidance.”

In the Mortgagee Letter, HUD states: 

The Housing and Economic Recovery Act of 2008 amends the National Housing Act to authorize a new temporary FHA mortgage insurance program called the HOPE for Homeowners (H4H) Program. Under this Program, certain borrowers facing difficulty in paying their mortgages will be eligible to refinance into affordable FHA-insured mortgages.  The H4H Program is effective for endorsements on or after October 1, 2008 through September 30, 2011.

While underwriting mortgages for the H4H Program presents unique challenges for the industry, FHA has confidence in its approved mortgagees to exercise their ingenuity in meeting these challenges, while adhering fully to this mortgagee letter, without compromising their ability to make and support sound underwriting decisions.  The information, directions, and guidance provided in this mortgagee letter reflect statutory requirements as well as the standards, policies and regulations adopted by the Board of Directors (Board) for the H4H Program.

The Mortgagee Letter then discusses the following 12 topics:

  1. Eligibility of borrowers, mortgages and properties
  2. Consumer protection and disclosure requirements
  3. Appraisal requirements
  4. Terms and interest rates
  5. MIP
  6. Calculating the maximum mortgage amount
  7. Underwriting and qualifying borrowers
  8. Documentation requirements
  9. Prohibitions on subordinate financing
  10. Equity and appreciation sharing
  11. Extinguishment of subordinate liens
  12. Monitoring and program compliance

For a copy of the full Mortgagee Letter, please click here.

Tags: Appraisals, Consumer Protection, Distressed Assets, Economic Stimulus, FHA Insurance, Foreclosure, HUD & FHA, Loan Modifications/Workouts, Loan Servicing, Loss Mitigation, Mortgage Banking - General, Regulations by the Editor
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OCC Concerned about Agreement between NY-AG, OFHEO, Fannie and Freddie

In a letter to the Office of Federal Housing Enterprise Oversight, the Office of the Comptroller of the Currency has expressed ”substantial concerns” regarding certain appraisal related agreements and a code of conduct agreed to by OFHEO, the Attorney General of the State of New York, Fannie Mae and Freddie Mac.

The OCC’s concerns relate to unintended adverse consequences of the Agreements and Code for the safety, soundness and efficient operation of national banks’ residential mortgage lending activities and the cost of credit to consumers.

The OCC says that it “strongly endorses” the principle that appraisers must be free from coercion or influence.  This objective should be achieved, however, through direct regulation.  The goal should not be sought indirectly by dictating the corporate and internal organizational structures of lenders.

The OCC then goes on to say that the Agreements and Code conflict with the approach set forth by Congress and have “significant, unintended negative consequences for lenders and borrowers, and . . . major legal flaws.”

The OCC provides its rationale and objections at length in the 12-page letter.

For a full copy of the letter, click here.

Tags: Appraisals, Consumer Protection, Fannie Mae/Freddie Mac, Fraud, Mortgage Banking - General, OCC, Regulations by the Editor
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