Single-Family Housing Policy Handbook 4000.1 that the Department of Housing and Urban Development (HUD) released this week.
While there’s still a lot of content to digest, we do know that as was published in the recent Federal Register Notice 6382-N-01, HUD included the proposed changes to the HECM for Purchase program in the newly published Handbook 4000.1. Notably, the proposed changes will allow HECM borrowers to satisfy their monetary investment requirement through additional funding sources, such as premium pricing and gifts, and will permit interested party contributions, up to six percent of the sales price, to be used toward the borrower’s origination fees and other closing costs.
The new HECM sections consolidate existing program guidance currently found in over 100 mortgagee letters, various handbooks, the HECM Financial Assessment and Property Charge Guide, and various other policy materials. The sections contain revisions to policy for clarity and consistency, and to conform to the published Handbook 4000.1 organizational structure.
Read the full article at NRMLAonline.org.