RHS Amends Single Family Housing Guaranteed Loan Program Rules

RHS adopted rules amending the Single Family Housing Guaranteed Loan Program (SFHGLP). This rule adoption amends the SFHGLP with respect to lender indemnification, refinancing, and qualified mortgage requirements. Specifically, this final rule: expands lender indemnification for loss claims in the case of fraud, misrepresentation, or noncompliance with applicable loan origination requirements; amends refinancing provisions to simply require that the new interest rate not exceed the interest rate on the original loan; adds a new refinance option, “streamlined-assist”; and provides that a loan guaranteed by RHS is deemed a Qualified Mortgage if the loan meets RHS requirements and meets certain requirements set forth by the Consumer Protection Finance Bureau with respect to qualified mortgages. The final rule becomes effective June 2, 2016.

Click here to view the RHS SFHGLP Final Rule