FHA Updates Guidance to Streamline Two ‘Redundant’ Mortgage Rules

The Federal Housing Administration (FHA) released two Mortgagee Letters on Tuesday, with both stating an intent to “streamline” its guidance on two different lending provisions. This, the agency says, is in an effort to reduce potential obstacles in the mortgage process for borrowers. In Mortgagee Letter (ML) 2019-04 titled “Removal of the Federal Housing Administration […]

Reverse Originators See Mixed Bag in New Borrower Verification Policy

Last week, the Federal Housing Administration (FHA) issued a new mortgagee letter implementing policy guidance on practices concerning the use of Third Party Verification (TPV) services as an alternative for authenticating employment, income or assets of potential borrowers. The letter applies to all FHA Title II traditional and reverse mortgages. FHA details that the new […]

HECM Financial Assessment Streamlined With FHA Policy Shift

The Federal Housing Administration (FHA) has issued a new mortgagee letter offering policy guidance on practices concerning the use of Third Party Verification (TPV) services as an alternative for authenticating employment, income or assets of potential borrowers. In Mortgagee Letter 19-01, released by the agency on Friday, FHA revises documentation requirements for the financial assessment […]