FHA published the quarterly update to the Single Family Housing Policy Handbook (SF Handbook 4000.1). Revisions to the SF Handbook include updated policy guidance, clarifications, corrections, and additions to Sections: I (Doing Business with FHA); II (Origination through Post-Closing/Endorsement); and V (Quality Control, Oversight and Compliance).
Per the SF Handbook transmittal, FHA:
- updated the Minimum Decision Credit Score definition to address application of a median score;
- clarified the Net Tangible Benefit definition in the Streamline Refinances section;
- added a definition for Reduction in Term in the Streamline Refinances section; and
- clarified the incident end date policy for when inspections may be performed for properties located in Presidentially-Declared Major Disaster Areas.
All lenders should review and become familiar with the changes outlined in the SF Handbook Transmittal (available in FHA’s Online Housing Policy Library).
Updates that incorporate previously published Mortgagee Letters are effective as previously announced in the corresponding Mortgagee Letter. Changes identified in Section II.A. Title II Insured Housing Programs Forward Mortgage must be implemented for mortgages with case numbers assigned on or after September 9, 2019 (lenders may, however, implement the changes immediately). All other changes must be implemented no later than September 9, 2019 (lenders may, however, implement the changes immediately).
