Disparate Impact – HUD Proposes Amendments to 24 CFR Part 100

In Client and Friends Memos, FHA by BMG Memorandum

In the August 19, 2019, issue of the Federal Register (84 FR 42854) HUD published a proposed rule to amend HUD’s 2013 regulatory interpretation of the Fair Housing Act’s disparate impact standard. HUD’s 2013 regulatory interpretation is set forth in 24 CFR Part 100. In the proposed rule HUD proposes to replace the current discriminatory effects standard in §100.500 with …

Rural Housing Service Amends Combination Construction to Permanent Loan Program (“Single Close Loans”)

In Client and Friends Memos by BMG Memorandum

By a final rule published in the Federal Register (84 FR 35003), the Rural Housing Service (RHS) amends its Single Family Housing Guaranteed Loan Program (SFHGLP) for Combination Construction to Permanent Loans (single close loans) effective October 1, 2019. The final rule is not retroactive – i.e., it will not affect agreements entered into prior to the final rule’s effective …

Will Equitable Subrogation be Prohibited for Uncured Home Equity Loans? Zepeda v. Federal Home Loan Mortgage Corporation, 2019 WL 3820019

In Client and Friends Memos, Texas Home Equity, Texas Legislation by BMG Memorandum

In a decision filed August 15, 2019, the United States Court of Appeals for the Fifth Circuit certified a question to the Supreme Court of Texas, the answer to which may significantly impact a lender’s ability to mitigate its losses on a constitutionally defective home equity loan. The case of Zepeda v. Federal Home Loan Mortgage Corporation, 2019 WL 3820019 …

Mortgage Credit Certificate Program Notice by TDHCA

In Client and Friends Memos, Texas Legislation by BMG Memorandum

In the August 16, 2019, issue of the Texas Register (44 TexReg 4371), the Texas Department of Housing and Community Affairs (TDHCA) published the following Public Notice regarding its latest Mortgage Credit Certificate Program to assist eligible very low, low, and moderate income first-time homebuyers with the purchase of a residence located within the State of Texas   Full Memorandum

FHA Rescinds ML 19-06 Requirements for Down Payment Assistance by Government Entities

In Client and Friends Memos, FHA by BMG Memorandum

On April 18, 2019, HUD issued Mortgagee Letter 19-06, (click here) setting forth new documentation requirements for down payment assistance to borrowers provided by government entities for FHA insured mortgage loans, effective for case numbers assigned on or after April 18, 2019 (see memorandum on Mortgagee Letter 19-06 posted on the firm’s website)   Full Memorandum

FHA Issues New Condominium Approval Process

In Client and Friends Memos, FHA by BMG Memorandum

In the August 15, 2019, Federal Register (84 FR 41846) and the August 14, 2019, update to FHA Single Family Housing Policy Handbook 4000.1, FHA issued new and revised regulations and new and revised Handbook requirements, respectively, which establish a new condominium approval process, effective October 15, 2019. This new condominium approval process includes but is not limited to the …

Texas Legislative Update IV – Bills Effective September 1, 2019 and Later

In Client and Friends Memos, Texas Legislation by BMG Memorandum

This legislative update summarizes bills from the 2019 Legislative Session that are effective on or after September 1, 2019, that we believe are of interest to our clients. Previous to this legislative update, we issued Legislative Update I, summarizing Senate Bill 2330 granting certain individuals temporary authority to act as residential mortgage loan originators in Texas; Legislative Update II, summarizing …

Texas Legislative Update III – Bills Effective Immediately

In Client and Friends Memos, Texas Legislation by Warren McCallum

This legislative update summarizes bills from the 2019 Legislative Session that are effective immediately that we consider are of interest to our clients. Previous to this legislative update, we issued Legislative Update I, summarizing Senate Bill 2330 granting certain individuals temporary authority to act as residential mortgage loan originators in Texas, and Legislative Update II, summarizing Senate Bill 614 and …