HUD released a redelegation of authority for the FHA Single Family Housing (SFH) Programs that updated the organization's original August 2003 release.

The release includes the following changes, among others.

• Since the original publication of the delegation of authority, a new division, the Home Valuation Policy Division, has been added to the Office of SFH Program Development.
• Source selection official authority has been redelegated from the Assistant Secretary for Housing and FHA Housing Commissioner to the Assistant Secretary and Deputy Assistant Secretary for SFH. Homeownership Center (HOC) Directors have also been redelegated source authority, which is subject to a dollar cap in their office contracts.
• M&M contractors were approved in July 2005 to execute routine documents for the management and sale of single-family properties acquired by HUD through its SFH Mortgage Insurance Program.
• The Office of Housing's Caribbean location was given authority to accept conveyance of title in accordance with local laws. For all other areas, these duties are handles by the Atlanta HOC.

Section I. SFH Programs: Office of Housing Organization

• All SFH Office managers in headquarters and the field report to the Deputy Assistant Secretary and Associate Deputy Assistant for SFH.
• The Home Mortgage Insurance Division of the of SFH Office is generally responsible for developing and implementing policies, procedures, and guidelines covering the pre-application through the final endorsement stage of FHA mortgage insurance cases, including mortgage loan origination and refinancing cases.
• The Program Support Division of the SFH Office is responsible for adminstering HUD's Housing Counseling program, managing FHA's nonprofit mortgagor discount sales and secondary financing programs, maintaining the SFH website, producing SFH brochures, overseeing the marketing of SFH programs, and providing a wide variety of technical assistance to the three offices within the SFH Office.
• The Home Valuation Division is responsible for managing all single family property appraisal and valuation requirements. These functions include oversight and monitoring of appraisers, 203K consultants, and FHA-approved inspectors, analyzing single family property valuation issues, including standards and policies associated with new construction, property rehabilitation, home equity conversion, mortgages, and modifications of the 203K and Title I programs. 
• A uniform structure applies to all the HOCs. The highest-ranking official in the HOC is the HOC Director, who is assisted by the HOC Deputy Director. Functions performed by the HOC staff are distributed, according to type among five divisions, each of which is headed by a Division Director. The five HOC Division titles are:

• Division Directors report to the HOC Director and Deputy Director. As is the case in headquarters, all staff report to the Deputy Assistant Secretary and the Associate Deputy Assistant Secretary for SFH.

Section II. SFH Programs: Functions

• General authority allows managers to sign any and all documents necessary to carry out the business within their program and geographical jurisdictions. In addition, it allows managers, when considering a proposal, to waive any directives not mandated by statute or regulation for good cause and with a written justification.
• Production allows a manager with delegated authority to make all necessary determinmations that relate to the insured mortgage process. Essentially, this begins with a proposal to insure a home mortgage and ends with the Department's endorsement of an insured mortgage. For all insurance programs, it includes, but is not limited to, approving direct endorsement lenders monitoring contract reviews; maintaining rosters and other lists of appraisers, inspectors and lenders; performing underwriting reviews for mortgage credit; performing appraisal reviews; performing architectural field reviews; and settling mortgage limits.
• Servicing and loss mitigation functions are intended to ensure the servicing of the Secretary-held mortgage portfolio and partial claims and the monitoring of the FHA servicers' use of loss mitigation and timely reporting of defaulted, FHA-insured loans. Additional responsibilities include writing off or compromising principal debt, up to a maximum of $100,000; providing on-site and off-site loss mitigation training to lenders, housing counseling agencies, and other FHA program offices within HUD; administering the Home Equity Conversion Mortgage reverse equity mortgage program; operating a nationwide call center to respond to questions concerning loss mitigation and foreclosure relief programs; and supporting the Department's endeavor against predatory lending practices.
• Quality assurance functions are intened to ensure that an FHA lender is in compliance with FHA lending requirements and procedures. Lenders that fail to meet FHA standards are subject to sanctions. Fuctions include monitoring lender performance; reviewing default and insurance claim statistics; placing a lender on credit watch; making recommendations to the FHA Mortgagee Review Board for the imposition of sanctions; entering into indemnification agreements; or terminating a lender's FHA status.
• The approval of new lenders and the recertification of existing lenders are FHA's "gatekeeping" functions and include the approval of single family and multifamly lenders and processing the approval and recertification applications from Single Family Title I and Title II lenders, and multifamily lenders for participation in FHA programs. An additional function is the administration of the Institution Master File system, which is used to track the status of lenders and their various authorities and which also "feedds" lender data to over 20 of HUD/FHA's other data systems.
• Every year, the Office of SFH issues a Notice of Funding Availability for the SFH Counseling Program. This competitive funding program is part of HUD's annual SuperNOFA publication that announces funding programs deveoped throughout the Department. In any given year, however, Congress may authorize funds for additional grant programs. The Assistant Secretary is the Grant Officer and the sole official responsible for making grantee selections. Other grant functions include developing criteria for grant applications, rating and ranking proposals, and selecting government technical representatives to oversee performance under the grant contracts. Once a grant is awarded, functions include monitoring a grantee’s compliance with the agreement, modifying a grant, terminating a grant for non-compliance, and closing out a grant in the usual course. The Assistant Secretary will retain and not redelegate the authority of the Grant Officer to make selections of grantees or to approve recipient noncompetitive grants.
• Periodically, Congress enacts legislation authorizing HUD to conduct a program on a demonstration basis to test the viability of a new program or product on a limited basis, e.g., by geography, case volume, or time. Functions related to demonstration programs include developing program criteria, implementing the program, monitoring activities and results, preparing any required reports to the Congress, and closing out the demonstration program.
• Although most property disposition functions occur after HUD has acquired title to a property, there are exceptions that involve the pre-acquisition period. For example, in anticipation of acquiring title, HUD may decide to allow a family to remain in the conveyed property (i.e., an occupied conveyance). Pre-acquisition decisions will then concern approving a lease and setting a rent level. Other decisions concern a property’s maintenance (or preservation) during the period of conveyance from a lender. HUD reviews claims for insurance benefits, and, once these are paid, the Department obtains title to a property and assumes the responsibilities of an owner. Among other things, HUD maintains the property, pays taxes and utility costs, and prepares it for sale. Contractors perform property maintenance functions, with HUD monitoring their work. Sales are conducted pursuant to a bidding process with functions ranging from advertising the property to execution of the deed upon a sale. HUD regulations governing single family property dispositions are set forth at 24 CFR part 291.

HUD regulations governing single famly property dispositions advise the Assistant Secretary will not delegate authority for direct sales to individuals or entities.

For further information regarding the release, contact Wanda Sampedro, Special Assistant to the Deputy Assistant Secretary for the Office of Single Family Housing,
Office of Housing, Department of Housing and Urban Development, 451
Seventh Street, SW., Room 9282, Washington, DC 20410, telephone (202)
708-2676, extension 2324. 

To view the full notice please click on the following link.

Redelegation of FHA Single Family Housing Program Authority