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The Dept. Of Housing and Urban Development has released Mortgagee Letter (ML) 2009-43 titled, "HOPE for Homeowners Program – Comprehensive Guidance"
The Helping Families Save Their Homes Act of 2009 amends the National Housing Act, providing for key changes in the HOPE for Homeowners (H4H) Program. The H4H Program is effective for endorsements on or before September 30, 2011. This Mortgagee Letter supersedes in their entirety Mortgagee Letters 2008-29, 2008-30 and 2009-03 and is effective for endorsements on or after January 1, 2010.
Key changes to the H4H Program:
- Borrowers are ineligible if their net worth exceeds $1,000,000,
- Borrowers must not have defaulted on any substantial debt in the last 5 years,
- The age of appraisal now follows standard FHA guidance,
- Reduced mortgage insurance premiums,
- Revised loan-to-value and debt-to-income ratios,
- Maximum loan-to-value excludes the Upfront Mortgage Insurance Premium,
- Eliminated requirement for obtaining most recent two year tax returns
- Eliminated special lender and underwriter certification,
- Exit Premium replaces Shared Equity,
- Shared Appreciation feature eliminated,
- New note and mortgage replaces previous shared equity and shared appreciation notes and mortgages, and
- Lenders must submit 5 test cases for pre-closing review by FHA.
Contents:
Part I Origination Guidance
Part II Upfront Payment to Subordinate Lien Holders
Part III Servicing Guidance
Part IV Secondary Market
Part V Pre-closing Review Test Cases
Part VI Monitoring and Program Compliance
To view the Mortgagee Letter in its entirety, please click here.
To view the Exhibits, please click on the following links
About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.
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