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THE 2008 HOUSING AND RECOVERY ACT - (H.R. 3221) …
Tags: cash investment, conforming loan limits, family members, fha mortgage, maximum mortgage, modernization act, national housing, price subject, provision, recovery act, revisions, stimulus, subtitle,Pages: 10
Language: english
Created: Mon Aug 4 21:07:24 2008
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THE 2008 HOUSING AND RECOVERY ACT - (H.R. 3221)
SIGNED BY PRESIDENT 07/30/08
FHA REVISIONS
TOPIC H.R. Provision Section Summary of Changes
FHA Modernization Limits increased from 95% to 115% of the median area
Act of 2008; home price subject to a maximum which is increased
203(b) (2) (A)
Maximum Mortgage Subtitle A: Building from 87% to 150% of the conforming loan limits. New
National
Limits American minimum minimum limit of $271,050, maximum
Housing Act
Homerownership $625,500. Effective after expiration of Economic
2112 Stimulus Act of 2008.
FHA Modernization
The borrower's cash investment is being increased from
Act of 2008;
Cash Investment 203(b)(2)(B) 3% to 3.5%, acceptable to borrow the required cash
Subtitle A: Building
Requirement and National Housing investment from family members provided the borrowed
American
Maximum Act amounts are secured by a lien that is subordinate to the
Homerownership
FHA mortgage
2113
FHA Modernization
Act of 2008;
203(b)(2)(B) Removes loan to value limits (including restrictions on
Subtitle A: Building
Maximum Loan to Value National Housing new construction) and increases the maximum loan to
American
Act value to 100%
Homerownership
2113
The FHA Mortgage Whistle Blower
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THE 2008 HOUSING AND RECOVERY ACT - (H.R. 3221)
SIGNED BY PRESIDENT 07/30/08
FHA REVISIONS
TOPIC H.R. Provision Section Summary of Changes
FHA Modernization
Act of 2008; Prohibits down payment assistance from seller or any
Down Payment Subtitle A: Building 203(b) National party who is reimbursed directly or indirectly from the
Assistance American Housing Act seller. Applies to loans underwritten after October 1,
Homerownership 2008
2113
FHA Modernization
Maximum upfront mortgage insurance premium
Act of 2008;
increased from 2.25% to 3%. Premiums for 1st time
Mortage Insurance Subtitle A: Building 203 (c ) National
borrowers completing approved homebuyer counseling
Premiums American Housing Act
is increased from a maximum of 2% to 2.75%. Does not
Homerownership
increase annual premiums.
2114
FHA Modernization
Act of 2008;
Limits on Financed Prohibts increase to the maximum loan amount for
Subtitle A: Building 203(d) National
Mortgage Insurance financed MIP when the loan to value exceeds 100% of
American Housing Act
Premiums the appraised value.
Homerownership
2112
The FHA Mortgage Whistle Blower
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THE 2008 HOUSING AND RECOVERY ACT - (H.R. 3221)
SIGNED BY PRESIDENT 07/30/08
FHA REVISIONS
TOPIC H.R. Provision Section Summary of Changes
FHA Modernization
Act of 2008; Notice Published Places a 12 month moratorium on implementation of
Moratorium on
Subtitle A: Building in Federal Risk-Based Mortgage Insurance Premiums as published
Implementation of Risk
American Register in the Federal Register May 5/13/08. Moratorium period
Based Premiums Homerownership 5/13/08 begins October 1, 2008
2133
FHA Modernization
Act of 2008;
Insurance of home improvement mortgages insured
Subtitle A: Building 203(k) National
Rehabilitation Loans under Section 203k transferred from the General
American Housing Act
Insurance Fund to the Mutual Mortgage Insurance Fund.
Homerownership
2115
FHA Modernization
Definition of mortgages revised to include insurance of
Act of 2008;
234 and 201 (a) condomiums under Section 203(b). Allows manufactured
Insurance of Subtitle A: Building
National Housing housing condomiums. Also prevents requirement that
Condominiums American
Act property be taxed as real propery by the state for
Homerownership
determination of real property.
2117
The FHA Mortgage Whistle Blower
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THE 2008 HOUSING AND RECOVERY ACT - (H.R. 3221)
SIGNED BY PRESIDENT 07/30/08
FHA REVISIONS
TOPIC H.R. Provision Section Summary of Changes
FHA Modernization
Act of 2008; 202(a) and 205
All Single Family Title II programs placed with the
Mutual Mortgage Subtitle A: Building Various Sections
Mutual Mortgage Insurance Fund (MMI) subject to
Insurance Fund American of National
provisions of the Federal Credit Reform Act 1990.
Homerownership Housing Act
2118
FHA Modernization
Act of 2008; Raises the maximum claim amount to a single national
HECM Maximum Claim Subtitle A: Building 203(g) National limit of $417,000 (or up to $625,500 in high cost areas)
Amount American Housing Act by tying the maximum loan amount to the FHLMC
Homerownership conforming limit.
2122
FHA Modernization
Act of 2008;
HECM Waiver of Upfront
Subtitle A: Building 255(l) National Deletes waiver of upfront premiums on mortgages to
Premiums for Mortgages
American Housing Act fund long term care.
to Fund Long Term Care Homerownership
2122
The FHA Mortgage Whistle Blower
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THE 2008 HOUSING AND RECOVERY ACT - (H.R. 3221)
SIGNED BY PRESIDENT 07/30/08
FHA REVISIONS
TOPIC H.R. Provision Section Summary of Changes
FHA Modernization
Act of 2008; Provides for insuring of Cooperative Housing. Makes a
HECM for Cooperative Subtitle A: Building 255(b) National technical corrections which prevented implemenation of
Housing American Housing Act the 2000 American Homeownership and Ecomonic
Homerownership Opportunity Act
2122
FHA Modernization
Counseling must be provided by independent third
Act of 2008;
255(d)(2)(B) parties who are not associated with or compensated by
HECM Counseling Subtitle A: Building
National Housing partiesi nvolved with originating or servicing the
Requirements American
Act mortgage or the sale of any type of financial or
Homerownership
insurance product.
2122
Secretary responsible to provide, or cause to be
255(f) and provided, counseling for the mortgagors. Counselors
HECM Counseling
2122 255(l) National must meet qualififying standard and follow protocols
Standards and Funding Housing Act established by the Secretary. Secretary to use a portion
of premiums to fund counseling.
The FHA Mortgage Whistle Blower
http://whistleblower.ml-implode.com
THE 2008 HOUSING AND RECOVERY ACT - (H.R. 3221)
SIGNED BY PRESIDENT 07/30/08
FHA REVISIONS
TOPIC H.R. Provision Section Summary of Changes
Origination fee limited to 2% of the maximum claim up
to $200,000 plus 1% of amount over $200,000 subject
255(r ) National
HECM Origination Fees 2122 to a maximum origination fee of $6000. Can be
Housing Act
changed in future based on analyis of cost impact.
Annual increases to maximum fee based on the CPI.
FHA Modernization
Act of 2008;
Insurance of HECM Subtitle A: Building 255(m) National Allows insurance of HECM loans for purchase
Purchases American Housing Act transactons.
Homerownership
2122
FHA Modernization
Act of 2008; Prohibits mortgagee from associating, employing or
HECM Originator
Subtitle A: Building 255(m) National participating in the selling of financial or insurance
Independence and
American Housing Act products. Requires HUD Secretary approval of all parties
Originator Approval Homerownership involved in the origination of a HECM loan.
2122
The FHA Mortgage Whistle Blower
http://whistleblower.ml-implode.com
THE 2008 HOUSING AND RECOVERY ACT - (H.R. 3221)
SIGNED BY PRESIDENT 07/30/08
FHA REVISIONS
TOPIC H.R. Provision Section Summary of Changes
HECM Prohibition FHA Modernization
Prohibits requiring mortgagor or any other party to
Act of 2008;
Against Requiring purchase insurance, annuity or financial products as a
Subtitle A: Building 255(o) National
Purchase of Financial condition of obtaining HECM. Excludes title, hazard,
American Housing Act
Products for HECM flood, or other peril insurance that is typically required
Homerownership
Eligibility or approved by the Secretary.
2122
FHA Modernization
Substantially increases the limits of energy efficient
Act of 2008; Section
improvements to the greater of 5% of the property value
Subtitle A: Building 106(a)(2) of the
Enery Efficient Program (not to exceed 5% of the maximum loan limit) or 2% of
American Energy Policy
loan limits under 203(b)(2)(A). Limits endosements to
Homerownership Act of 1992
5% of total 1-4 family endorsements.
2123
FHA Modernization Provides for establishment of a pilot program to create
Automated Act of 2008; an automated process using alternative credit ratings for
Underwriting Pilot Subtitle A: Building 257 National borrowers who lack traditional credit. May include
Program for Alternative American Housing Act information from alternative sources such as rent,
Credit Borrowers Homerownership utilities, and insurance.
2124
The FHA Mortgage Whistle Blower
http://whistleblower.ml-implode.com
THE 2008 HOUSING AND RECOVERY ACT - (H.R. 3221)
SIGNED BY PRESIDENT 07/30/08
FHA REVISIONS
TOPIC H.R. Provision Section Summary of Changes
FHA Modernization
Adds the Federal Housing Administration to the list of
Act of 2008;
agencies covered by section 1014 which imposes a
Increased Penalties for Subtitle A: Building
18 U.S.C. 1014 maximum $1,000,000 fine or 30 year prison term for
Fraud American
fraudulent statements made in connection with an
Homerownership
application for insurance or guaranty.
2129
FHA Modernization
203(I); 203(o), Sections repealed: 203(I)Housing in outlying areas,
Act of 2008;
203(p), 203(q), 203(o) and (p) temporary economic conditions in Indian
Subtitle A: Building
Repealed Sections 222, 237, 245 areas, 203(q) Alegheny Reservation, 222 Mortgages for
American
National Housing Servicemen, 237 Special mortgage insurance assistance,
Homerownership
Act and 245 Gradulated Mortgages.
2120
FHA Modernization
Title I Loan limits increased to: $25,090 for
Act of 2008;
Manufactured Housing repair/improvement; $69,678 unit; $92,904 unit/lot;
Subtitle B: 2(b)(1) National
Maximum Mortgage $23,226 lot; Amounts are subject to annual increases.
Manufactured Housing Act
Amount Secretary to establish index based on housing price data
Housing Loan
collected by the census bureau.
Modernization 2145
The FHA Mortgage Whistle Blower
http://whistleblower.ml-implode.com
THE 2008 HOUSING AND RECOVERY ACT - (H.R. 3221)
SIGNED BY PRESIDENT 07/30/08
FHA REVISIONS
TOPIC H.R. Provision Section Summary of Changes
FHA Modernization
Act of 2008;
Upfront mortgage insurance premium not to exceed
Manufactured Housing Subtitle B: 2(f) National
2.25% of loan amount, and annual premium not to
Insurance Premiums Manufactured Housing Act
exceed 1% of base loan amount.
Housing Loan
Modernization 2146
FHA Modernization
Act of 2008; Requires the Secretary establish underwriting criteria for
Manufactured Housing 2(b)(11)
Subtitle B: the manufactured home programto ensure the program
Revision of National Housing
Manufactured reamains financially sound. Requires revision of existing
Underwriting Criteria Act
Housing Loan underwriting criteria within 6 months of enactment.
Modernization 2148
FHA Modernization
Subjects the sale of manufactured homes and connected
Manufactured Housing Act of 2008;
services to the provisions of Sections 3,8,16,17,18 of
Prohibition Against Subtitle B: Title I National
RESPA. Allows Secretary to prohibit practices determined
Kickbacks and Unearned Manufactured Housing Act
as unfair, deceptive or contrary to the borrower's
Fees Housing Loan
interests.
Modernization 2149
The FHA Mortgage Whistle Blower
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THE 2008 HOUSING AND RECOVERY ACT - (H.R. 3221)
SIGNED BY PRESIDENT 07/30/08
FHA REVISIONS
TOPIC H.R. Provision Section Summary of Changes
FHA Modernization
Lease requirements: Minimum expiration 3 years after
Act of 2008;
origination date, must have minimum 1 year renewable
Subtitle B: 2(b) National
Leasehold Requirements term, and lessor must provide 6 months written notice
Manufactured Housing Act
prior to termination in the event of community closure.
Housing Loan
Failure to result in 1 year extension.
Modernization 2150
The FHA Mortgage Whistle Blower
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