I just received an email from the Risk Manager at our company and he was part of a conference call today with FHA regarding HR3221.  Here is a rundown of the biggest issues raised on the call today with some of the answers to questions people are having.

To quote our Risk Manager “…Expect numerous Mortgagee Letters as these are implemented…”

More to come — and beware — the below information is uber-mortgage-geek-speak!

1. Down payment Assistance: prohibited on decisions on and after 10/1/08, defined as the date we sign the MCAW or – for AUS loans – the date of the last updated AUS run.   So even on manual underwrites, the final adjusted numbers must be finalized by 10/1/08.
2. New borrower investments will be 3.5% (96.5% LTV, regardless of loan size)
3. UFMIP will change; new amount still to be determined, anticipated by 10/1
4. The recent risk-based UFMIP will continue thru 9/30 case assignments, with the new ones starting with cases assigned on and after 10/1
5. Monthly MIP will continue to be 0.55% for >95% LTV, o.50% for <=90% LTV
6. Mortgage limits: $270,050 is the standard limit across the country, with higher amounts allowed county-by-county up to $625,500, not to exceed 115% of area median home prices
7. Condo requirements will be streamlined, and will include ability for lenders to do project approvals
8. Appraiser roster eligibility – will require appraisers to be state-certified, not just state-licensed.
9. Numerous changes on HECMs, including maximum fees, prohibiting cross-selling, and will begin a “HECM for Purchase’ program.

Normally, I don’t like to include uber-mortgage-geek-speak on the blog, but with so many changes coming out between now and 10/1, I thought I would pass them along as I see them.