September 19, 2015
In the weeks leading up to the launch of the new FHA Single Family Home Loan policy handbook, HUD 4000.1, we’ve discussed some of the contents of the handbook in detail, but some may wonder what exactly HUD 4000.1 is and how it affects them.
HUD 4000.1 consolidates and updates FHA loan policy for single-family into a single reference. It supersedes many prior FHA loan mortgagee letters, which are issued occasionally by the FHA/HUD to announce, revise, or clarify FHA loan policy.
According to the FHA official site, HUD 4000.1, “The Federal Housing Administrations (FHA) Single Family Housing Policy Handbook (SF Handbook; HUD Handbook 4000.1) is a consolidated, consistent, and comprehensive source of FHA Single Family Housing policy.”
What does that mean? According to the FHA/HUD, the new handbook has “three Cs”:
–Consolidated: Several hundred FHA Handbooks, Mortgagee Letters, Housing Notices, and other policy documents have been consolidated into this single source. This eliminates the need for mortgagees and other stakeholders in FHA transactions to search through multiple stand-alone policy documents to find precise and current policy information.
–Consistent: The SF Handbooks consistent format of Definition, Standard, and Documentation supports greater understanding, easier use, and a better source for mortgagees to extend the wide range of FHA products and programs across a broader spectrum of eligible borrowers.
–Comprehensive: The SF Handbook is well on its way to becoming a comprehensive source of Single Family Housing policy. While not yet complete, the SF Handbook currently has everything a lending entity needs to become FHA approved; to originate and receive an FHA insurance endorsement; to service; and to adhere to FHAs quality control policies for almost all Title II forward mortgagesthe bulk of FHA volume.
How can borrowers and industry pros access the new handbook?
FHAs online SF Handbook which the FHA describes as, “fully electronic, fully searchable policy library that uses web-based technology to achieve easier access to precise policy information”.
You can also access the new handbook in portable document format (PDF) which the FHA says is, “linear format similar to traditional FHA Handbooks, but with enhanced links, format, and structure to provide a comprehensive beggining-to-end view of FHA’s published policies.”
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It was designed especially for real estate websites–a widget that displays FHA loan limits for the counties serviced by those websites.
It’s simple to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today: http://www.fha.com/fha_loan_limits_widget
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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