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WBK Industry News - Federal Regulatory Developments

FHA Publishes Updated Single Family Policy Handbook

On March 14, 2016, FHA published an updated and expanded Single Family Housing Policy Handbook 4000.1, for Title II forward mortgages, including the claims and disposition section. Multiple sections of this Handbook published previously become effective on this date except for the new claims and disposition section. Lenders and other stakeholders in the FHA programs now are able to use this Handbook as their primary source of FHA Single Family Housing Policy.

The Claims and Disposition section of this handbook which becomes effective on September 30, 2016, contains policy changes and consolidates previous FHA policies and provides comprehensive guidance on claims submission and the disposition of HUD Real- Estate- Owned (REO) Single-Family properties. It also covers HUD’s Management and Marketing (M & M) program and all activities from acquisition of title by HUD to disposition of the property. It will be incorporated into the outline Handbook on June 30, 2016.

Three model documents regarding property disposition are also published with this section of the Handbook and become effective for use on or after September 30, 2016. They are:

  • Exclusive Listing Period Purchase Addendum for Government Entities and HUD-Approved Non-Profits;
  • Exclusive Listing Period Purchase Addendum for Individual Owner-Occupant Buyers; and
  • HUD Earnest Money Forfeiture and Return policy.

These three model documents can be found here:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/model_documents.

The Single Family Policy Handbook can be found here: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh.