The timer on the home page of the Nehemiah Program's Web Site has expired -- indicating down payment assistance funded by home sellers is no longer available on loans insured by the Federal Housing Administration. But that isn't the only change on FHA loans effective Oct. 1.
In addition to the suspension of seller-funded DPAs, H.R. 3221, The Housing and Economic Recovery Act of 2008, calls for the Hope for Homeowners program to take effect today. Under that program, borrowers refinance out of upside down mortgages into an FHA-insured mortgage, with the original lender discounting the loan balance to 87 percent loan-to-value, and FHA making a 90 percent LTV loan while getting a piece of any appreciation.
The National Association of Home Builders noted that program involves $300 billion.
Updated Underwriting and Transmittal Summary forms as well as the updated FHA HUD/VA 92900 addendum form became effective today, Calyx Software reminded government originators last week.
The Department of Housing and Urban Development announced earlier this month that all FHA reverse mortgage originators must be approved by HUD as of Oct. 1.
Today, risk-based premiums were suspended on government-insured mortgages. Risk-based premiums were only implemented on July 14.
HUD wasn't the only entity with Oct. 1 changes.
Ginnie Mae, which securitizes FHA loans, told mortgagees earlier this month that new issuers of single-family MBS will be required to have a $1 million net worth effective Oct. 1.
Fannie Mae said in August that its adverse market delivery charges would increase to 0.50 percent on Oct. 1. Fannie also announced increases to its loan-level price adjustments are effective today.
Washington companies holding an Exempt Mortgage Broker Registration or Mortgage Broker License must have completed and submitted new forms through the Nationwide Mortgage Licensing System by Oct. 1.