RHS amended guidance relating to the treatment of Mortgage Credit Certificates (MCC) in the new Guaranteed Underwriting System (GUS). In the new GUS, an MCC is treated as an addition to repayment income. Previously, an MCC was treated as a reduction of the principal, interest, taxes, and insurance (PITI) payment. All applications must adhere to the new guidance (requiring all MCCs to be applied to repayment income) effective April 1, 2021. Prior to April 1, 2021, lenders have 2 options: (1) process loan applications utilizing GUS (which follows the new guidance); or (2) process loan applications utilizing a manual submission method (which follows previous guidance).
Click here to view the RHS Guaranteed Origination Notice (03-05-21): https://www.tenaco.com/wp-content/uploads/2021/03/RHS-SFH-Guaranteed-Origination-Notice-03-05-21.docx
