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Regulatory Updates

Expiration of FHA Flipping Waiver

Flip This House Logo

Be sure to read this UPDATE posted 12/23/2011

In February, FHA extended the FHA property flipping waiver until December 31, 2011. As of now, this waiver has not been extended again and will expire on 12/31/11.

All loans that are utilizing the waiver to get around the 90 day seasoning required by FHA on flip properties (mainly being used now by investors who are fixing/flipping homes) must have a fully-executed purchase contract and must have a case number assigned on or before 12/31/11. No extensions will be given to this deadline. Any loans with case numbers & contracts January 1st or later will require 90 days seasoning prior to the borrower making loan application, with the only exceptions being the following:

4155.2 4.7.h Exceptions to the 90-day Restriction

The only exceptions to the 90-day resale restriction described in HUD 4155.2 4.7.e are for

  • properties acquired by an employer or relocation agency in connection with the relocation of an employee
  • resales by HUD under its Real Estate Owned (REO) program
  • sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies
  • sales of properties by nonprofits approved to purchase HUD-owned single family properties at a discount with resale restrictions
  • sales of properties that are acquired by the seller by inheritance
  • sales of properties by state and federally-chartered financial institutions and government sponsored enterprises
  • sales of properties by local and state government agencies, and
  • sales of properties within Presidentially Declared Disaster Areas.

If HUD decides to extend the waiver, I will notify you here ASAP.  Contact me if you have any questions. Be sure to read this UPDATE posted 12/23/2011

Less Paperwork; Really?

Know Before You Owe in WI or CAAs once seen on a Loan Document Drawer’s bulletin board: “I don’t mind coming to work. It’s the 8 hour wait until going home that’s killing me.”

Here is some news of interest for sure: there is a push to simplify the disclosure paperwork given to borrowers when obtaining a mortgage. Beyond that, it’s a government agency that pushing for the change! The CFPB (Consumer Financial Protection Bureau) might actually combine mortgage forms, or make them simpler? Could this be true?

Here’s what their website has to say about it:

“Every day, consumers shopping for mortgage loans use a mortgage disclosure to get basic facts about loans. It’s a form that describes the loan you’ve applied for before you sign on the dotted line – in other words, so you know before you owe.

“But right now, these forms are complicated and sometimes hard to understand.

“We’re going to create a simpler, single disclosure form, and we need your help designing one that works for you. Curious? Intrigued? Eager to weigh in? Enter your e-mail address below and we’ll tell you when it’s time to give us input.”

To read the whole thing and to sign up for giving them your input, visit their website.

If you have questions about anything related to home loans, please contact me at 262-293-5144 or any of the other methods shown here.