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”)
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 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 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
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 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 …
FHA Cash-out Refinance Mortgages – Mortgagee Letter 2019-11
On August 1, 2019, the FHA issued Mortgagee Letter 2019-11 which reduces the current Maximum Loan-To-Value (LTV) and Combined Maximum Loan-To-Value (CLTV) percentages to 80 percent on Cash-out Refinance Mortgages. This change is effective for case numbers assigned on or after September 1, 2019. Full Memorandum
Regulation Z HOEPA and Qualified Mortgage Annual Threshold Adjustments
In the August 1, 2019, issue of the Federal Register (84 FR 37565), the Consumer Financial Protection Bureau established the following 2020 thresholds for high-cost and qualified mortgages under §§1026.32 and 1026.43, respectively. Full Memorandum
Texas Legislative Update IV – Bills Effective September 1, 2019 and Later
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
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 …