Bulletin W13-028 - Update, FHA Guidelines

Topic included in Bulletin W13-028:

• FHA Conforming and High Balance Matrix has been updated with the changes announced in Mortgagee Letter 2013-05, with Case Numbers assigned on and after April 1, 2013
• Changes are:
  • All files require an AUS finding.  Files receiving a Refer/Eligible for credit score less than 620 and DTI greater than 43% will be manually underwritten by CMS
  • Files receiving a Refer/Ineligible are currently not eligible for CMS financing
  • Ratios for manually underwritten loans are 31/43%; higher ratios maybe acceptable with compensating factors
  • FHA Underwriting Guidelines have been amended with acceptable FHA compensating factors
  • The Loan Terms/LTV grid on the Matrix now reflects a tier for AUS loans and a tier for manually underwritten loans
  • DTI for First Time Homebuyers with credit scores below 620 has been aligned with the new FHA guidelines
• These guidelines do not apply with loans when Case Numbers were assigned prior to April 1, 2103
• The FHA Underwriting Guidelines have been updated to align with Mortgagee Letters 2013-04 and 2013-05
• Annual Premium and Guideline changes in Mortgagee Letter 2013-04 were previously announce in CMS Bulletin W13-022

Updated Underwriting Guidelines can be found on the Intranet
Download: Bulletin - W13-028 (PDF)