Important Updates

Freddie Mac Servicing Alignment Initiative Training.

Learn about the Freddie Mac Standard Modification, a new loan modification option that will be available through Freddie Mae Servicers later this fall. Even if your client is not eligible for other modification programs, including the Home Affordable Modification program (HAMP), they may still qualify to have their monthly principal and interest payments reduced by at least 10 percent under the Freddie Mac Standard Modification. Learn about: Borrower eligibility, Mortgage eligibility, Property eligibility, Trial period and permanent modification processes, Implementation processes and dates. If you are a housing counselor who has already participated in, or are planning on attending, a Freddie Mac "Servicing Alignment Initiative" webinar offered over the last two months, please also plan to attend this free, one-hour session. Freddie Mac instructors are offering this new webinar "live" multiple times throughout the month of October. Please register below for only one "Freddie Mac Standard Modification Overview for Housing Counselors" webinar. Training Dates: (all times are eastern)

Register today at:

• October 04, 2011 - 11:00 a.m. - 12:00 p.m.
• October 06, 2011 - 2:00 p.m. - 3:00 p.m.
• October 11, 2011 - 11:00 a.m. - 12:00 p.m.
• October 13, 2011 - 2:00 p.m. - 3:00 p.m.
• October 18, 2011 - 11:00 a.m. - 12:00 p.m.
• October 20, 2011 - 2:00 p.m. - 3:00 p.m.
• October 25, 2011 - 11:00 a.m. - 12:00 p.m.
• October 27, 2011 - 2:00 p.m. - 3:00 p.m.

	Douglas E. Hendricks is a results-oriented professional with over nineteen years of exposure to real estate and business development experience. Over the past sixteen years Doug and his appraisal firm have appraised over thirty-thousand homes for Banks, Mortgage Companies, Builders, Attorneys and various local and national celebrities.
Home

Rain is something San Antonio and most of Texas has not seen much of for the entire year of 2011. Average rainfall for San Antonio is 28 inches annually. As of yesterday, there has only been a total of 6.72 inches recorded for 2011. Needless to say, San Antonio is very crispy. Not only is today Friday, but its raining so we are off to a great start for the weekend. Bring on the rain!!! 

	Douglas E. Hendricks is a results-oriented professional with over nineteen years of exposure to real estate and business development experience. Over the past sixteen years Doug and his appraisal firm have appraised over thirty-thousand homes for Banks, Mortgage Companies, Builders, Attorneys and various local and national celebrities.
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FHA SEMINAR: September 20-21, 2011

Fort Worth, Texas

September 20-21, 2011 - Fort Worth, TX. A Day with FHA & The FHA Appraisal. Join the Fort Worth Mortgage Bankers Association and FHA’s Denver Homeownership Center in Dallas/Fort Worth for two days of training. Underwriters, processors, loan officers, managers, and appraisers will benefit from this opportunity. Classes will borrower eligibility, underwriting appraisals, refinances, troubleshooting, FHA connection, and more. Certificates will be issued to all attendees and six hours of CE Credit will be obtainable for Appraiser Licensing. There is limited seating; register early to ensure attendance. Registration required, fee. For more information please visit: http://www.fortworthmba.org/

Three Notices for FHA Lenders:

1. Beginning Monday, September 12, 2011, lenders will no longer be able to order a streamline refinance case with an appraisal. The only available streamline refinance case type will be streamline without appraisal. A prior FHA refinance case with appraisal should be ordered as a fully processed Prior FHA case with an appraisal.

2. Beginning Monday, September 12, 2011, for Streamline Refinances cases without an appraisal, when a prior FHA refinance case is netted to a new case number, the outstanding principal balance for the projected month of closing and the following month will automatically be provided in FHA Connection. These fields will appear on the Case Number Assignment screen when the case number is assigned. They will also appear on Refinance Authorization and Refinance Credit Query. The values will be used to limit the entry in the Unpaid Principal Balance field on FHAC Insurance Application for FHA to FHA refinance cases. The Unpaid Principal Balance amount is used to determine the maximum mortgage allowed for the case. For this reason, it is very important that the lender enter an accurate projected closing date. If they find the entered closing date is no longer accurate, they should correct it, prior to remitting UFMIP, using FHAC Refinance Authorization to obtain a new outstanding principal balance from A43 before processing Insurance Application.

3. Due to Lenders asking if the 15,000+ list of sponsored originators and associated data can be made available for downloading to Excel, the data collection and transfer of the Sponsored Originator data is being released in preparation for the September 19, 2011 release of a revised Sponsored Originator List Screen that will provide a link to download this data in Excel. This release will provide the data but lenders will not have access to it until September 19, 2011 when the FHAC release is implemented.

For FHA technical support on these or any other FHA issue, please contact the FHA Resource Center at: www.hud.gov/answers You can also get email technical support at: answers@hud.gov

Public Announcement!!!!!!!

FHA currently not UAD!!!!!

FHA appraisal forms require regular PDF submission!!!!!!!

• URAR Form 1004/70
• Individual Condominium Unit Appraisal Form 1073/465
• Exterior-Only Inspection Appraisal Form 2055/2055
• Exterior-Only Inspection Individual Condominium Unit Form 1075/466

• Days on the market for the subject property and all comps
• Sale type for the subject property and all comps
• Status of kitchen and bath improvements
• and other fields, data, and definitions.

Quality and consistency are the goal of the new appraisal data fields and definitions. But how do you ensure that your appraiser is doing it correctly? After all, if it's wrong, it's liable to hold up the loan, or possibly even get you flagged by Freddie, Fannie, or Ginnie for extra attention. This problem is solved by using the appropriate software!

Fannie Mae 2055 Quantitative Analysis Report. Most commonly used by lenders and is based on adjusted sales price of comparable sales.

Fannie Mae 2065 Qualitative Analysis Report. Less frequently used by lenders and is based on plus or minus ratings/rankings of comparable sales. Whole dollar adjustments are not made on this form.

The logic is that the qualitative analysis is more similar to the manner in which the open market determines value. Typically market participants do not make dollar adjustments for differences the way appraisers do in the more traditional "quantitative" analysis. Conversely, the market simply rate/rank the comparable sales to the subject property. This method is more of a "qualitative" analysis with no dollar amounts used in the analysis.

Theoretically, there will be less time associated with the "qualitative" analysis. However, that may not always hold true if such lengthy narrative is warranted. I am of the opinion this may hold water in densely populated areas and may not be suitable for some suburban/rural areas.

At the end of the day, it is the appraiser's responsibility to determine which analysis is most suitable and applicable. Regardless, the "quantitative" analysis will be more reliable than the "qualitative" analysis. As with all assignments, this should all be discussed and disclosed within the appraisal certification and limiting conditions.

Date: December 28, 2010

To: All Approved Mortgagees

All Approved Mortgage Servicers

All FHA Roster Appraisers

Mortgagee Letter 2010-43

Subject Flood Zone Requirements for Federal Housing Administration (FHA)

Insured Mortgages

Purpose This Mortgagee Letter provides new guidance on FHA Flood Zone

requirements and updates Mortgagee Letter 2009-37. FHA now requires that

all Mortgagees obtain a flood zone determination on all properties instead of

strongly encouraging such action. In addition, FHA is now consistent with

the Coastal Barrier Resources Act (CBRA) by prohibiting FHA Mortgage

Insurance for properties located within designated coastal barriers.

The new guidance contained in this Mortgagee Letter is as follows:

A requirement that Mortgagees obtain life-of-loan flood zone

determination services for all properties that will be collateral for

FHA-insured mortgages.

A notice that any property located within a designated Coastal

Barrier Resource System (CBRS) unit is not eligible for an FHAinsured

mortgage.

Effective Date All requirements contained in this Mortgagee Letter are effective for all case numbers assigned on or after March 1, 2011.

Changes to Existing Policy:

The changes to existing policy that are a part of this mortgagee letter provide

new guidance and clarification of existing guidance. The revisions identify

the Topic heading and provide the entire content of each block affected with

the specific changes underlined. The changes will be integrated into the FHA

Single Family On-Line Handbooks prior to March 1, 2011.

If you have questions concerning this Mortgagee Letter, please call the FHA

Resource Center at 1-800-CALLFHA (1-800-225-5342). Persons with

hearing or speech impairments may reach this number via TDD/TTY by

calling 1-877-TDD-2HUD (1-877-833-2483).

David H. Stevens

Assistant Secretary for Housing-Federal Housing Commissioner

Mortgagee Letter 2010-43, 4155.2, Chapter 4.3.j

Instructions to FLHA Roster Appraisers:

FHA Roster Appraisers are required to review the applicable FEMA

FIRM and make appropriate notations on the applicable appraisal

reporting form. If the property is located within a SFHA, the

appraiser must:

Attach a copy of the flood map panel to the appraisal report.

Enter the FEMA zone designation on the reporting forms well

as identify the map panel number and map date.

Quantify the effect on value, if any.

Note: If the property is not shown on any map, the appraiser must

enter “not mapped.”

Appraisers are required to perform the due diligence necessary to

determine if a property is located within a CBRS. The CBRS

boundaries are identified on the FEMA FIRM by patterns of

backward slanting diagonal lines, both solid and broken. The

USFWS mapping database is an additional source that identified the

CBRS boundaries. If the property is located within the CBRS

boundaries, appraisers are instructed to immediately stop work on

the assignment and return the file to the Mortgagee.

Reference: For more information on flood insurance requirements,

see UD 4150.2, Valuation Analysis for Single Family One-to-Four

Unit Dwellings.

MANUFACTURED HOUSING

FOUNDATION REQUIREMENTS

500. GENERAL. This section outlines general material and quality standards for all foundations in this manual.

501-1. FOOTING DEPTH. Excavation for footings or foundation walls shall extend below depth of soil subjected to seasonal or character-istic volume change to undisturbed soil that provides adequate bearing. Select the greatest depth required by any of the provisions below, reference Figure 5-1.

A. Maximum Frost Penetration Depth. The bottom of footings shall extend at least to the depth indicated on the map on page H-4.

B. Alternate Seasonal Wetting and Drying. This is especially important with ex-pansive soils. If expansive soils exist, consult a geotechnical engineer to obtain required foot-ing depth.

C. Footing Depth. The footings shall be deep enough to provide required uplift capac-ity. (This value may need to be determined for high wind areas after the calculations needed to determine footing bearing have been com-pleted.)

502. FOUNDATION MATERIALS. Footings and foundations shall be constructed of solid materials such as masonry, concrete, or treated wood, based on the Foundation Design Concept Selection (Appendix A) and Founda-tion Capacity Tables. (Appendix C) (For ma-sonry and concrete refer to CABO R-302.2, R-304.1 and R-304.3; for wood refer to CABO R-302.1 and R-304.5.)

503-1. FOUNDATION REQUIREMENTS. All exterior walls, marriage walls, marriage wall posts, columns and piers, must be sup-ported on an acceptable foundation system that must be of sufficient design to support safely the loads imposed, as determined from the character of the soil.

A. Height Above Grade. Foundation walls shall extend at least 8" above the finished grade adjacent to the foundation at all points. See Figure 5-1.

B. Minimum Foundation Wall and Wall Footing Thickness. For masonry or concrete construction, the minimum foundation wall will be 6 inches. The minimum reinforced concrete footing thickness will be 6 inches or 1-1/2 times the length of the footing projection from the foundation wall, whichever is greater.

503-2. PIER AND COLUMN FOOTING REQUIREMENTS. Footings for pier founda-tions shall be reinforced concrete and should be placed level on firm undisturbed soil of ade-quate bearing capacity and below the frost penetration depth. They can also be placed on engineered, compacted fill, approved by a li-censed geotechnical engineer.

A. Unusual Conditions. Where unusual conditions exist, the spacing of piers and pier size and the load bearing capacity of the soil shall be determined specifically for such condi-tions. 

B. Minimum Pier and Pier Footing Thickness. The minimum thickness for a pier is 8 inches. The minimum thickness for pier footings is 8 inches or 1-1/2 times the length of the footing projection from the pier, whichever is greater.

503-3. FOOTING REINFORCING (HORIZONTAL). Reinforce footings when the projection on each side of the wall, pier, or column exceeds 2/3 of the footing thickness, or when required because of soil conditions.

503-4. MASONRY PIERS AND WALLS. All masonry piers and walls shall have mor-tared bed and head joints. Reinforcing and grouting shall be in accordance with the foun-dation concept selected from Appendix A and designed in Appendix C.

503-5. CRAWL SPACE REQUIRE-MENTS (Basementless spaces) 

A. Height Requirement. Ground level must be at least 18 inches below bottom of wood floor joists and 12 inches below bottom of chassis beam. Where it is necessary to pro-vide access for maintenance and repair of me-chanical equipment located in the under floor space, the ground level in the affected area shall not be less than 2 feet below wood floor joists. (Refer to CABO, Section R-309.) 

B. Interior vs. Exterior Ground Level. The interior ground level must be above the outside finish grade unless:

C. Openings. Locations of crawl space openings and ventilation openings should be on long foundation walls. Avoid any openings on short foundation walls. Sill plates or other structural members should not be randomly cut to accommodate openings. Continuity of struc-tural members must be maintained.

503-6. FOUNDATION WALLS FOR BASEMENTS. The design and reinforcing of basement walls is NOT in the scope of this document. Refer to local codes and ordinances for guidance. Refer also to CABO, Section R-304: "Foundation Walls." Design the unit’s foundation based on soil conditions present at the site.

503-7. BACK FILL. Material used for back fill must be clean and free of wood scraps or other deleterious substances and must be placed carefully against walls.

503-8. STEEL BEAMS AND COLUMNS. The analysis and design of steel transverse girders, steel longitudinal girders potentially used under marriage walls to reduce the num-ber of steel pipe columns within a basement, and the steel pipe columns themselves are NOT within the scope of this document for system Types E5, E6 and E7.