Freddie Mac Servicing Alignment Initiative Training.
Learn about the Freddie Mac Standard Modification, a new loan modification option that will be available through Freddie Mae Servicers later this fall. Even if your client is not eligible for other modification programs, including the Home Affordable Modification
program (HAMP), they may still qualify to have their monthly principal and interest payments reduced by at least 10 percent under the Freddie Mac Standard Modification. Learn about: Borrower eligibility, Mortgage eligibility, Property eligibility, Trial period
and permanent modification processes, Implementation processes and dates. If you are a housing counselor who has already participated in, or are planning on attending, a Freddie Mac "Servicing Alignment Initiative" webinar offered over the last two months,
please also plan to attend this free, one-hour session. Freddie Mac instructors are offering this new webinar "live" multiple times throughout the month of October. Please register below for only one "Freddie Mac Standard Modification Overview for Housing
Counselors" webinar. Training Dates: (all times are eastern)
Register today at:
Rain is something San Antonio and most of Texas has not seen much of for the entire year of 2011. Average rainfall for San Antonio is 28 inches annually. As of yesterday, there has only been a total of
6.72 inches recorded for 2011. Needless to say, San Antonio is very crispy. Not only is today Friday, but its raining so we are off to a great start for the weekend. Bring on the rain!!!
Corrected FHA EEM Program Info:
The FHA Energy Efficiency Mortgage (EEM) program allows a borrower to finance up to 100 percent of the expense of a cost-effective “energy package” based on analysis by and recommendations of a qualified, third-party home energy rater.
The required home energy audit must be conducted using a tool known as the Home Energy Rating Systems (HERS). Standards for completing of the HERS audit, and for the auditors eligible to conduct a HERS audit, are most commonly established by either:
States agencies having authority to prescribe specific requirements and standards for residential energy ratings and rater qualifications, or;
The national Residential Energy Services Network (RESNET), a non-profit organization founded by the National Association of State Energy Officials and Energy Rated Homes of America, that has set standards for energy efficiency assessments in the U.S. since
State requirements must be satisfied when completing an EEM transaction in states with specific requirements governing the scope of the energy analysis/rating or the qualifications or licensing of the energy auditor/rater. In states with certification and
licensing requirements for energy raters, it is recommended that lenders request the HERS rater license number or evidence of certification, when underwriting an EEM.
Please be sure to visit our EEM Home page, This EEM Home page provides number of resources, including: a sample EEM worksheet, which helps lenders calculate the maximum EEM loan amount, and a Cross Reference Tips sheet, which consolidates many of the EEM
rules by category. Visit FHA’s EEM homepage at:
For FHA technical support on EEMs or any other FHA issue, please contact the FHA Resource Center at:
www.hud.gov/answers You can also get email technical support at:
FHA SEMINAR: September 20-21, 2011
Fort Worth, Texas
September 20-21, 2011 - Fort Worth, TX. A Day with FHA & The FHA Appraisal. Join the Fort Worth Mortgage Bankers Association and FHA’s Denver Homeownership Center in Dallas/Fort Worth for two days of training. Underwriters, processors, loan officers, managers,
and appraisers will benefit from this opportunity. Classes will borrower eligibility, underwriting appraisals, refinances, troubleshooting, FHA connection, and more. Certificates will be issued to all attendees and six hours of CE Credit will be obtainable
for Appraiser Licensing. There is limited seating; register early to ensure attendance. Registration required, fee. For more information please visit:
Three Notices for FHA Lenders:
1. Beginning Monday, September 12, 2011, lenders will no longer be able to order a streamline refinance case with an appraisal. The only available streamline refinance case type will be streamline without appraisal. A prior FHA refinance case
with appraisal should be ordered as a fully processed Prior FHA case with an appraisal.
2. Beginning Monday, September 12, 2011, for Streamline Refinances cases without an appraisal, when a prior FHA refinance case is netted to a new case number, the outstanding principal balance for the projected month of closing and the following
month will automatically be provided in FHA Connection. These fields will appear on the Case Number Assignment screen when the case number is assigned. They will also appear on Refinance Authorization and Refinance Credit Query. The values will be used to
limit the entry in the Unpaid Principal Balance field on FHAC Insurance Application for FHA to FHA refinance cases. The Unpaid Principal Balance amount is used to determine the maximum mortgage allowed for the case. For this reason, it is very important that
the lender enter an accurate projected closing date. If they find the entered closing date is no longer accurate, they should correct it, prior to remitting UFMIP, using FHAC Refinance Authorization to obtain a new outstanding principal balance from A43 before
processing Insurance Application.
3. Due to Lenders asking if the 15,000+ list of sponsored originators and associated data can be made available for downloading to Excel, the data collection and transfer of the Sponsored Originator data is being released in preparation for
the September 19, 2011 release of a revised Sponsored Originator List Screen that will provide a link to download this data in Excel. This release will provide the data but lenders will not have access to it until September 19, 2011 when the FHAC release is
For FHA technical support on these or any other FHA issue, please contact the FHA Resource Center at:
www.hud.gov/answers You can also get email technical support at:
FHA currently not UAD!!!!!
FHA appraisal forms require regular PDF submission!!!!!!!
The Uniform Appraisal Dataset (UAD) and appraisal reporting forms must comply with the new standard beginning September 1st, 2011.
HUD has announced the adoption of UAD in Mortgagee Letter 2011-30. HUD’s mandatory implementation of UAD will be effective on all case numbers assigned on or after January 1, 2012.
Quality and consistency are the goal of the new appraisal data fields and definitions. But how do you ensure that your appraiser is doing it correctly? After all, if it's wrong, it's liable to hold up the loan, or possibly even get you flagged by Freddie,
Fannie, or Ginnie for extra attention. This problem is solved by using the appropriate software!
Fannie Mae 2055 Quantitative Analysis Report. Most commonly used by lenders and is based on adjusted sales price of comparable sales.
Fannie Mae 2065 Qualitative Analysis Report. Less frequently used by lenders and is based on plus or minus ratings/rankings of comparable sales. Whole dollar adjustments are not made on this form.
The logic is that the qualitative analysis is more similar to the manner in which the open market determines value. Typically market participants do not make dollar adjustments for differences the way appraisers do in the more traditional "quantitative"
analysis. Conversely, the market simply rate/rank the comparable sales to the subject property. This method is more of a "qualitative" analysis with no dollar amounts used in the analysis.
Theoretically, there will be less time associated with the "qualitative" analysis. However, that may not always hold true if such lengthy narrative is warranted. I am of the opinion this may hold water in densely populated areas and may not be suitable for
some suburban/rural areas.
At the end of the day, it is the appraiser's responsibility to determine which analysis is most suitable and applicable. Regardless, the "quantitative" analysis will be more reliable than the "qualitative" analysis. As with all assignments, this should all
be discussed and disclosed within the appraisal certification and limiting conditions.
Date: December 28, 2010
To: All Approved Mortgagees
All Approved Mortgage Servicers
All FHA Roster Appraisers
Mortgagee Letter 2010-43
Subject Flood Zone Requirements for Federal Housing Administration (FHA)
Purpose This Mortgagee Letter provides new guidance on FHA Flood Zone
requirements and updates Mortgagee Letter 2009-37. FHA now requires that
all Mortgagees obtain a flood zone determination on all properties instead of
strongly encouraging such action. In addition, FHA is now consistent with
the Coastal Barrier Resources Act (CBRA) by prohibiting FHA Mortgage
Insurance for properties located within designated coastal barriers.
The new guidance contained in this Mortgagee Letter is as follows:
A requirement that Mortgagees obtain life-of-loan flood zone
determination services for all properties that will be collateral for
A notice that any property located within a designated Coastal
Barrier Resource System (CBRS) unit is not eligible for an FHAinsured
Effective Date All requirements contained in this Mortgagee Letter are effective for all case numbers assigned on or after March 1, 2011.
Changes to Existing Policy:
The changes to existing policy that are a part of this mortgagee letter provide
new guidance and clarification of existing guidance. The revisions identify
the Topic heading and provide the entire content of each block affected with
the specific changes underlined. The changes will be integrated into the FHA
Single Family On-Line Handbooks prior to March 1, 2011.
If you have questions concerning this Mortgagee Letter, please call the FHA
Resource Center at 1-800-CALLFHA (1-800-225-5342). Persons with
hearing or speech impairments may reach this number via TDD/TTY by
calling 1-877-TDD-2HUD (1-877-833-2483).
David H. Stevens
Assistant Secretary for Housing-Federal Housing Commissioner
Mortgagee Letter 2010-43, 4155.2, Chapter 4.3.j
Instructions to FLHA Roster Appraisers:
FHA Roster Appraisers are required to review the applicable FEMA
FIRM and make appropriate notations on the applicable appraisal
reporting form. If the property is located within a SFHA, the
Attach a copy of the flood map panel to the appraisal report.
Enter the FEMA zone designation on the reporting forms well
as identify the map panel number and map date.
Quantify the effect on value, if any.
Note: If the property is not shown on any map, the appraiser must
enter “not mapped.”
Appraisers are required to perform the due diligence necessary to
determine if a property is located within a CBRS. The CBRS
boundaries are identified on the FEMA FIRM by patterns of
backward slanting diagonal lines, both solid and broken. The
USFWS mapping database is an additional source that identified the
CBRS boundaries. If the property is located within the CBRS
boundaries, appraisers are instructed to immediately stop work on
the assignment and return the file to the Mortgagee.
Reference: For more information on flood insurance requirements,
see UD 4150.2, Valuation Analysis for Single Family One-to-Four
501-1. FOOTING DEPTH.
A. Maximum Frost Penetration Depth.
B. Alternate Seasonal Wetting and Drying.
C. Footing Depth.
502. FOUNDATION MATERIALS.
503. STRUCTURAL REQUIRE-MENTS
503-1. FOUNDATION REQUIREMENTS.
A. Height Above Grade.
B. Minimum Foundation Wall and Wall Footing Thickness.
503-2. PIER AND COLUMN FOOTING REQUIREMENTS.
A. Unusual Conditions.
B. Minimum Pier and Pier Footing Thickness.
503-3. FOOTING REINFORCING (HORIZONTAL).
503-4. MASONRY PIERS AND WALLS.
503-5. CRAWL SPACE REQUIRE-MENTS
A. Height Requirement.
B. Interior vs. Exterior Ground Level.
1. Adequate gravity drainage to a posi-tive out fall is provided, or
2. The permeability of the soil and the location of the water table is such that water will not collect in the crawl space, or
3. Drain tile and automatic sump pump system are provided.
503-6. FOUNDATION WALLS FOR BASEMENTS. The design and reinforcing of basement walls is
NOT in the scope of this document. Refer to local codes and ordinances for guidance. Refer also to CABO, Section
R-304: "Foundation Walls." Design the unit’s foundation based on soil conditions present at the site.
503-7. BACK FILL.