On July 10, 2019, the Federal Housing Administration (“FHA”) published its quarterly update of the Single Family Housing Policy Handbook (“SF Handbook”). The FHA advised in FHA Info #19-34 that “revisions include updated policy guidance, clarifications, corrections, and additions to SF Handbook Section I (Doing Business with FHA), Section II (Origination through Post-Closing/Endorsement), and Section V (Quality Control, Oversight and Compliance).”
Notable changes include an update in Section II (Origination Through Post-Closing/Endorsement) to the definition of Minimum Decision Credit Score to apply the “median” instead of “middle” credit score, and a clarification of the definition of Net Tangible Benefit in the Streamline Refinances section. Details of all the updates can be viewed in the SF Handbook Transmittal, available here.
Changes to the SF Handbook Section II.A. Title II may be implemented immediately but are required for mortgages with case numbers assigned on or after September 9, 2019. Similarly, other changes go into effect on September 9, 2019, but may be implemented sooner.
