Articles Tagged With: Disclosures

July 10, 2018

Before Your FHA Home Loan Closing Date: What You Should Know

Before your FHA home loan closes and you sign on the dotted line, there are some things you should know. Home closing paperwork spells out the agreements you have made on the mortgage and these documents are legally binding. It’s a very good idea to be familiar with them and know their contents before you sign. What kind of paperwork will you get with a new purchase mortgage loan at or before your closing date? One very important document is known as the Closing Disclosure and it should be compared to another document you received earlier in the FHA loan process known as the Loan Estimate. The estimate is not an indication that your FHA loan has been turned down or approved, it is simply a way to add up | more...

February 16, 2016

Electronic Signatures on FHA Loan Documents: FHA Loan Rules In HUD 4000.1

By Joe Wallace

In our last blog post we reviewed the rules in HUD 4000.1 on borrower signatures on FHA mortgage documents. Ever since the publication of HUD 4000.1 late last year we have been examining key passages in the new rule book as there have been many changes, updates, and restatements of FHA mortgage loan policy borrowers and industry professionals alike should be aware of. FHA loan rules for single-family mortgages permit the use of electronic signatures on certain FHA mortgage loan documents provided the signature and procedures used in collecting those signatures meets FHA standards. HUD 4000.1 addresses these requirements, starting with a basic definition of “electronic signature” to avoid confusion: “An Electronic Signature refers to any electronic sound, symbol, or process attached to or logically associated with a contract or | more...

November 12, 2015

HUD 4000.1 On Lead Paint Disclosures

By Joe Wallace

Since the FHA and HUD published the new single family home loan rulebook, HUD 4000.1 earlier in 2015, we have been examining important aspects of that rulebook. The FHA changed/updated some portions of the rules, added other portions to existing regulations, and issued a message that lenders were expected to become familiar with HUD 4000.1 as a whole, rather than try to explain each and every instance of changed or modified policy in the new publication. So we’ve been tackling some of these relevant issues, discussing them individually as they appear in HUD 4000.1. One such issue has to do with lead paint disclosure requirements. HUD 4000.1 states, “If the Property was built before 1978, the seller must disclose any information known about lead-based paint and lead-based paint hazards before | more...

Can I buy a manufactured home with an FHA loan?

September 29, 2015

Changes To Home Loans Coming In October

By Joe Wallace

The Consumer Financial Protection Bureau (CFPB) is a government agency designed to help consumers and protect their interests against fraud and unfair practices. CFPB issued a statement recently about new federal guidelines that will affect the mortgage lending process, making it easier for borrowers to understand the transaction. The agency has announced that starting October 3, 2015, those who apply for “most mortgages” on or after that date, “the stress of shopping for a mortgage will be reduced, as our new mortgage disclosure rule takes effect. The new rule and disclosures ease the process of taking out a mortgage, helping you save money, and ensuring you know before you owe.” What are the changes you should be aware of? According to ConsumerFinance.gov: Four overlapping disclosure forms will be streamlined into | more...

June 17, 2015

Home Loan Disclosure Changes Coming August 1, 2015

By Joe Wallace

On August 1, 2015, new federal laws will require changes to loan information disclosures that are designed to make borrowers more fully informed. The new requirements affect FHA, VA, conventional and any other type of mortgage loan. The new requirements, announced by the Consumer Financial Protection Bureau, “…will simplify and improve disclosure forms for mortgage transactions. Consumers currently receive different, but overlapping federal disclosure forms with the terms and costs of mortgage loans.” That overlap proves confusing for borrowers, especially those who have never purchased or refinanced a home loan before. Two new forms replace the set of previously required disclosures. According to CFPB.gov, these new forms are, “the Loan Estimate, given three business days after application, and the Closing Disclosure, given three business days before closing.” CFPB says all | more...

August 15, 2013

FHA Mortgage Insurance Rules Update

By Joe Wallace

The FHA rules for mortgage insurance changed when the FHA and HUD issued Mortgagee Letter 2013-04, which featured, “Revision of Federal Housing Administration (FHA) policies concerning cancellation of the annual Mortgage Insurance Premium (MIP) and increase to the annual MIP”. All of the scheduled changes to the MIP rules have taken place. Among the major features of those changed rules? According to the introductory paragraphs of the FHA/HUD mortgagee letter: “Consistent with FHAs ongoing efforts to strengthen the Mutual Mortgage Insurance Fund, FHA is: revising the period for assessing the annual MIP; removing the exemption from the annual MIP for loans with terms of 15 years or less and Loan to Value (LTV) ratios of less than or equal to 78 percent at origination; and increasing the annual MIP on | more...

November 1, 2011

FHA Loans and RESPA

By Joe Wallace

FHA loans, like other mortgage transactions, are governed by a set of regulations including the Real Estate Settlement Procedures Act or RESPA. According to the official site at FHA.gov, “The Real Estate Settlement Procedures Act (RESPA) insures that consumers throughout the nation are provided with more helpful information about the cost of the mortgage settlement and protected from unnecessarily high settlement charges caused by certain abusive practices.” Borrowers who suspect those abusive practices have been used in their FHA home loan transactions (and/or conventional loans) are urged to report such problems. But where does the borrower start? What areas of the FHA loan transaction are governed by RESPA? According to the FHA, “RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in | more...

February 3, 2011

FHA Loans: What’s In My Contract?

By Bruce Reichstein

When the buyer wants to buy a property for sale using an FHA home loan, they find the property they want and make an offer to the seller. The buyer will naturally discuss the potential sale with the seller, then make a written offer for the property. The written offer is serious business--if the seller accepts, the written offer becomes a contract.