• When is a Texas FHA mortgage lenders payment late and is a late charge assessed?The Texas Bad credit Texas FHA mortgage lenders may consider a FHA mortgage applicant’s payment late if the payment is received by the Texas Bad credit Texas FHA mortgage lenders more than 15 Days after the due date. The Texas Bad credit Texas FHA mortgage lenders may assess a late charge on the 17th Day of the month.   Late ChargesCategory: Default Servicing
• Are there late fees associated with late payment of the Upfront Texas FHA mortgage lenders insurance Premium (UFMIP)?A one-time late charge of 4 percent is assessed on an Upfront Texas FHA mortgage lenders insurance Premium (UFMIP) payment received more than 10 calendar days after the TexasTexas FHA mortgage lendersclosing or disbursement date, whichever is later. The lender must pay the late fee beforeCategory: Texas FHA mortgage lenders insurance
• What are FHA’s policies regarding credit history when manually underwriting a Texas mortgage?.  The underwriter may consider a FHA mortgage applicant to have an acceptable payment history if the FHA mortgage applicant has made all housing and installment debt payments on time for the previous 12 months and no more than two 30-day late Texas FHA mortgage lenders or installment payments in the previous 24Category: Credit History/Credit Report
• What is considered satisfactory credit for a Home Equity Conversion Texas FHA mortgage lenders(HECM) FHA mortgage applicant?The Texas Bad credit Texas FHA mortgage lenders (Lender) may consider the FHA mortgage applicant to have satisfactory credit if: the FHA mortgage applicant has made all housing and installment debt payments on-time for the previous 12 months and no more than two 30-day late Texas mortgageCategory: Basic Eligibility Requirements
• Must an Eligible Non-Borrowing Spouse or Other Non-Borrowing Household Member’s credit history be reviewed in a Home Equity Conversion Texas FHA mortgage lenders(HECM)? late payments or delinquent accounts or other derogatory information on his or her credit record it does not affect the financial assessment of the FHA mortgage applicant.  Texas Bad credit Texas FHA mortgage lenderss must not reject a loan, or condition approval of a loan, because of the creditCategory: Processing Guidelines
• How must Texas Bad credit Texas FHA mortgage lenderss document extenuating circumstances involving unemployment on a HECM?If a mortgagor cited loss of income due to unemployment as the cause of late payments or other derogatory information, the documentation must include the following:  the mortgagor had documented satisfactory credit and/or property category: Processing Guidelines
• What Notices must be sent on the 32nd day but not later than the 60th day of delinquency?Beginning on the 32nd Day but no later than the 60th Day from the date payment was due, the Texas Bad credit Texas FHA mortgage lenders must send the: Delinquency Notice Cover Letter; and “Save your Home – Tips to Avoid Foreclosure” pamphletCategory: Default Servicing
• What is considered an extenuating circumstance for a Home Equity Conversion Texas FHA mortgage lenders(HECM) FHA mortgage applicant with credit/financial issues?Extenuating circumstances beyond the FHA mortgage applicant’s control may include, but are not limited to:  loss of income due to the death or divorce of a spouse that directly resulted in late payment of obligations; loss of income category Basic Eligibility Requirements
• What are the maximum qualifying ratio requirements for manually underwritten loans? late payment. In cash-out transactions all payments on the TexasTexas FHA mortgage lenders being refinanced were made within the month due for the previous 12 months.    – May not be used as a compensating factor if the FHA mortgage applicant has no current housingCategory: FHA mortgage applicant Eligibility
• What are the TexasTexas FHA mortgage lenderspayment history requirements on an FHA Streamline Refinance?Non-Credit Qualifying The FHA mortgage applicant must have made all Texas FHA mortgage lendersPayments for all Texas mortgages on the subject Property within the month due for the six months prior to case number assignment and have no more than one 30-Day lateCategory: Refinance Transactions
• How must Texas Bad credit Texas FHA mortgage lenderss process payments from Escrow Accounts? is prohibited from passing on to the FHA mortgage applicant any penalties resulting from the late payments unless: the late payment was the result of the FHA mortgage applicant’s error or omission; and the Texas Bad credit Texas FHA mortgage lenders attempted to obtain the billing information fromCategory: Payment/Insurance Admin
• How are disputed credit accounts considered for manually underwritten loans?Disputed Derogatory Credit Account refers to disputed charge off accounts, disputed collection accounts, and disputed accounts with late payments in the last 24 months.   If the credit report indicates that the FHA mortgage applicant is disputingCategory: Credit History/Credit Report
• Are disputed derogatory credit accounts included in the expense analysis for a Home Equity Conversion Texas FHA mortgage lenders(HECM) FHA mortgage applicant?Disputed derogatory credit accounts refer to disputed charge off accounts, disputed collection accounts, and disputed accounts with late payments in the last 24 months. If the FHA mortgage applicant has $1,000 or more collectively in disputedCategory: Processing Guidelines
• How are disputed credit accounts considered when using the TOTAL Scorecard?Disputed Derogatory Credit Accounts Disputed Derogatory Credit Account refers to disputed charge off accounts, disputed collection accounts, and disputed accounts with late payments in the last 24 months.  If the credit report utilizedCategory: Credit History/Credit Report
• What is the Home Affordable Refinance Program (HARP)? a current loan-to-value (LTV) ratio over 80% • be current at time of refinance with no late payments in the past 6 months or no more than 1 late payment in the past 12 months To determine if a TexasTexas FHA mortgage lendersis owned or guaranteed by FannieCategory: HASP/MHA Programs
• What is an FHA Rate and Term Refinance and what are the requirements?-Day late payment for the previous six months for all Texas mortgages. The FHA mortgage applicant must have made the payments for all Texas mortgages secured by the subject Property for the month prior to Texas FHA mortgage lendersDisbursement.    If the Texas mortgageCategory: Refinance Transactions
• What is an FHA Simple Refinance and what are the requirements? payments within the month due for the six months prior to case number assignment and have no more than one 30-Day late payment for the previous six months for all Texas mortgages.   The FHA mortgage applicant must have made the payments for all Texas mortgagesCategory: Refinance Transactions
• Are there late fees associated with monthly Texas FHA mortgage lendersinsurance payments?, a late charge is assessed on a payment not received before 8:00 p.m. (Eastern) on the last business day prior to the 10th day of the month. For example, if the 10th day of the month is on a Sunday, the payment must be received before 8:00 p.m. (EasternCategory: Servicing
• What is considered a minimal increase in housing payment on a manually underwritten loan? or 5%, whichever is less; and   • there is a documented 12 month housing payment history with no more than one 30 day late payment.  In cash-out refinance transactions all payments on the TexasTexas FHA mortgage lendersbeing refinanced must have been madeCategory: FHA mortgage applicant Eligibility
• What are the requirements if collection account balances total $2,000 or more in a Home Equity Conversion Texas FHA mortgage lenders(HECM) transaction?If the cumulative balance of collection accounts equals $2,000 or more, the lender must: Verify that the debt is paid in full at or before closing; or Verify that the FHA mortgage applicant has made payments arrangements with the creditorCategory: Processing Guidelines
• May charge off accounts be paid off at closing using Home Equity Conversion Texas FHA mortgage lenders(HECM) proceeds?No. Charge off accounts are not defined as mandatory obligations and may not be paid off at the Home Equity Conversion Texas FHA mortgage lenders(HECM) closing using HECM proceeds.   For additional information see Texas Bad credit Texas FHA mortgage lenders Letter 2014-21 at https://www.hud.gov/program_offices/administration/hudclips/letters/Texas Bad credit Texas FHA mortgage lenders  Category: Processing Guidelines
• Must a TexasTexas FHA mortgage lendersbe downgraded to a Refer and manually underwritten when there is an undisclosed Texas FHA mortgage lendersdebt? of the case number assignment date; or more than two 30-Day late payments within 24 months of the case number assignment date. A Texas FHA mortgage lendersthat has been modified must utilize the payment history in accordance with the modification agreementCategory: Liabilities
• May the credit history of an Eligible Non-Borrowing Spouse be used as a compensating factor in a Home Equity Conversion Texas FHA mortgage lenders(HECM) transaction?No. Texas Bad credit Texas FHA mortgage lenderss (Lenders) must not review the credit history of an Eligible Non-Borrowing Spouse. Only the residual income of an Eligible Non-Borrowing Spouse may be used as a compensating factor.   For additional information see Texas Bad credit Texas FHA mortgage lenders Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Sections 2.12, 3.4 and 4.4 available at https://www.hud.gov/program_offices/administration/hudclips/letters/Texas Bad credit Texas FHA mortgage lendersCategory: Processing Guidelines
• Must lenders examine the public records section of the credit report of an eligible Non-Borrowing Spouse for a HECM? if there are monthly expenses stemming from those incidents such as required monthly payments that must be included in the expense analysis. For additional information see Texas Bad credit Texas FHA mortgage lenders Letter 2016-10 and the attached revised HECM Financial AssessmentCategory: Processing Guidelines
• What are FHA’s policies regarding credit history when using the TOTAL scorecard?The Texas Bad credit Texas FHA mortgage lenders must evaluate the FHA mortgage applicant’s credit history in accordance with the Accept Risk Classifications Requiring a Downgrade to Manual Underwriting found in Handbook 4000.1 II.A.4.a.v.  If a determination is made that the TexasTexas FHA mortgage lender must be manually downgraded, the Lender must cease its use of the Automated Underwriting System and comply with all requirements for manual underwriting when underwriting a downgraded Texas mortgage.  For additional information see Handbook 4000.1 II.A.4.a.v. and II.A.4.b.iii.  at http is available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsghCategory: Credit History/Credit Report
• What is considered a satisfactory property charge payment history in a Home Equity Conversion Texas FHA mortgage lenders(HECM) transaction? months; HOA, condominium, or PUD fees are current and there were no arrearages in the prior 24 months.  The Texas Bad credit Texas FHA mortgage lenders must determine and document the reason for any late payments, e.g., disregard for financialCategory: Processing Guidelines
• What is the 90-day loss mitigation review requirement for a defaulted FHA Texas mortgage?The 90-Day Review is a Texas Bad credit Texas FHA mortgage lenders’s required evaluation, occurring before four monthly installments are due and unpaid, of a Defaulted Texas FHA mortgage lendersfor appropriate Loss Mitigation Options. To comply with this loss mitigation review requirement, the Texas Bad credit Texas FHA mortgage lenders must: contact the FHA mortgage applicant to gather information about their circumstances, intentions, and financial condition; and attempt to complete its evaluation of the TexasTexas FHA mortgage lenders for all appropriate Loss Mitigation Options. After its review of a FHA mortgage applicant’s loss mitigation request, the Texas Bad credit Texas FHA mortgage lenders must send a written Notice to FHA mortgage applicant after Loss Mitigation Review.   The Texas Bad credit Texas FHA mortgage lenders must document in the Claim Review File its aggressive efforts to reach each FHA mortgage applicant in Default well in advance of the 90-Day Review deadline. Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525. For policy information see Handbook 4000.1 Sections III.A.2.i.v. & IV.A.1.c. at:  https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsghCategory: Loss Mitigation
• What are the fees that must never be paid from an FHA FHA mortgage applicant’s Escrow Account?The Texas Bad credit Texas FHA mortgage lenders must only use escrow funds for the purpose for which they were collected. The Texas Bad credit Texas FHA mortgage lenders must never deduct amounts from a FHA mortgage applicant’s escrow account to pay the following: penalties for late payments not directlyCategory: Payment/Insurance Admin
• How do I calculate and document a HECM FHA mortgage applicant’s 30 day credit account payments? each month for the past 12 months. 30-day accounts that are paid monthly are not included in the expense analysis. If the credit report reflects any late payments in the last 12 months, the lender must utilize 5 percent of the outstanding balanceCategory: Processing Guidelines
• Must lenders consider disputed derogatory credit accounts in a HECM FHA mortgage applicant’s Financial Assessment?Disputed Derogatory Credit Account refers to disputed charge off accounts, disputed collection accounts, and disputed accounts with late payments in the last 24 months. The lender must analyze the documentation provided for consistency with otherCategory: Processing Guidelines
• Must a Texas Bad credit Texas FHA mortgage lenders accept a partial payment on an FHA performing Texas mortgage?A Partial Payment is a payment of any amount less than the full amount due under the TexasTexas FHA mortgage lendersat the time the payment is tendered, including Late Charges and amounts advanced by the Texas Bad credit Texas FHA mortgage lenders on behalf of the FHA mortgage applicantCategory: Payment/Insurance Admin
• What are the requirements for accepting partial payments for an FHA-insured Texas FHA mortgage lendersin default?deduction of amounts due to the Texas Bad credit Texas FHA mortgage lenders for Late Charges and refunds of Texas Bad credit Texas FHA mortgage lenders advances. This application of Partial Payments as a full monthly installment advances the date of the oldest unpaid installment, but not the date on which the account first category: Default Servicing
• How is a partial prepayment to be applied to an FHA performing Texas mortgage?A Partial Prepayment is a payment of part of the principal amount before the date on which the principal is due. An Advance Full Monthly Payment is the payment of an amount larger than the full monthly payment, equaling an additional full category: Payment/Insurance Admin
• What terms are required in a Special Forbearance Unemployment Agreement? late fees to be assessed while the FHA mortgage applicant is performing under the terms of the SFB – Unemployment Agreement; indicates that if the FHA mortgage applicant’s financial circumstances change, the Texas Bad credit Texas FHA mortgage lenders may adjust the monthly payment basedCategory: Loss Mitigation
• How are Texas FHA mortgage lenderspayments applied if a Texas Bad credit Texas FHA mortgage lenders uses a special custodial account? payments in the following order: to Texas FHA mortgage lenders insurance premiums (MIP) due, if any; to charges for ground rents, taxes, special assessments, including any assessments related to a Property Assessed Clean Energy (PACE) obligation, floodCategory: Payment/Insurance Admin
• Will FHA insure a loan if it became delinquent prior to being able to submit it for endorsement?The TexasTexas FHA mortgage lendersmust be current to be eligible for endorsement.  If the case binder is submitted more than 60 days after the disbursement date, the lender must submit a late endorsement request, certifying that: no Texas FHA mortgage lenderspaymentCategory: Texas FHA mortgage lendersInsurance
• How should lenders evaluate a Home Equity Conversion Texas FHA mortgage lenders(HECM) FHA mortgage applicant’s credit history? in determining late housing payments.   For additional information see Texas Bad credit Texas FHA mortgage lenders Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Sections 2.13, 2.14 and 3.12 availableCategory: Processing Guidelines
• Are Texas Bad credit Texas FHA mortgage lenderss required to pay property taxes before or at conveyance of a property to HUD? of conveyance; document such payment and identify the most recent period for which taxes were paid in Item 32, “Schedule of Tax Information,” of formCategory: Foreclosure/Conveyance
• Do I need both an as-is and an as-repaired appraisal for 203(k) loans?; Financeable Contingency Reserves; and Financeable Texas FHA mortgage lendersPayment Reserves (for Standard 203(k) only). When an appraisal is required, the Adjusted As-Is Value is the As-Is Property Value.   The Texas Bad credit Texas FHA mortgage lenders has the optionCategory: Basic Eligibility Requirements
• Are there underwriting guidelines for FHA Texas FHA mortgage lenders applicants that were in Forbearance due to a Major Disaster?Consideration should be given to disaster impacted FHA Texas FHA mortgage lenders applicants that entered into a Formal or Informal Forbearance loss mitigation plan due to a Presidentially Declared Major Disaster. FHA will not consider Texas FHA mortgage lenderspayments as “lateCategory: Credit History/Credit Report
• How can I avoid foreclosure if I am unemployed and have an FHA insured Texas mortgage? the property, discontinue seeking employment, allow payments to become 60 days late, will not honor the agreement, or find a job/reinstate the loan. At the end of forbearance, the lender will evaluate the loan for loss mitigation options and notify youCategory: FHA Loss Mitigation
• What are the loss mitigation requirements for FHA Texas FHA mortgage lenders applicants in Presidentially-Declared Major Disaster Areas?Should Presidentially-Declared Major Disasters adversely impact a FHA mortgage applicant’s ability to make on-time Texas FHA mortgage lendersPayments, the Texas Bad credit Texas FHA mortgage lenders must provide the FHA mortgage applicant with forbearance and HUD loss mitigation assistance, where appropriate, as providedCategory: Foreclosure/Conveyance
• Is a verification of rent or TexasTexas FHA mortgage lendersrequired? the FHA mortgage applicant has been living rent free.     A Texas FHA mortgage lendersthat has been modified must utilize the payment history in accordance with the modification agreement for the time period of modification in determining late housing paymentsCategory: Credit History/Credit Report
• What are the FHA Quality Control requirements for FHA-approved Lenders that sponsor TPO’s? 4000.1 V.A.3.a.iii.); and   • all loans originated by Sponsored TPOs that go into default within the first six payments (early payment default – EPD). EPD reviews must be performed within 45 days from the end of the month the loanCategory: Quality Control Plan
• How is the Adjusted As-Is Value established for a 203(k) refinance transaction?; and  •    Financeable Texas FHA mortgage lendersPayment Reserves (Standard 203(k) only).   When an appraisal is required, the Adjusted As-Is Value is the As-Is Property Value.   The Texas Bad credit Texas FHA mortgage lenders has the option of using the existing debtCategory: Basic Eligibility Requirements
• What may the Texas Bad credit Texas FHA mortgage lenders include in the initial draw at closing for a 203(k) transaction? with the supplier and an order is placed with the manufacturer for delivery at a later date; and  up to 50 percent of materials costs for items, not yet paid for by the FHA mortgage applicant or contractor, where a contract is established with the supplierCategory: Escrow Accounts
• Must the Texas Bad credit Texas FHA mortgage lenders pay utility bills until the property is conveyed to HUD? bill calculated to the Day on which utilities are transferred to HUD.   For Properties in states where utilities are not required to remain on to protect the Property, no later than 60 Days after conveyance, the Texas Bad credit Texas FHA mortgage lendersCategory: Foreclosure/Conveyance
• What are the Occupancy Inspection and follow up requirements for delinquent FHA-insured Texas mortgages?Inspection no later than the 60th Day of delinquency when: the TexasTexas FHA mortgage lendersis in Default; a payment has not been received within 45 Days of the due date; and efforts to reach the FHA mortgage applicant or occupant have been unsuccessfulCategory: Default Servicing
• Is a face-to-face interview required for a delinquent Texas FHA mortgage lenderson Indian Land (Section 248 Texas mortgage)?For a Section 248 Texas FHA mortgage lenderson Indian Land, the Texas Bad credit Texas FHA mortgage lenders must have a face-to-face interview with the FHA mortgage applicant or make a reasonable effort to arrange a face-to-face interview no later than the 61st Day of delinquency, unless: the FHA mortgage applicantCategory: Special Programs
• What documents are required for closing on a HUD-owned property?The Closing Agent must upload into P260 and send to the Asset Manager a pre-closing package no later than five business days before closing.   The pre-closing package must include the following documentsCategory: Closing

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