The Federal Housing Administration published Mortgagee Letter 2020-05, which permits FHA roster appraisers to use exterior-only or desktop-only appraisal inspections as a substitute for interior inspections for HECM for Purchase, HECM Traditional and HECM Refinance transactions. The same policy applies to FHA forward mortgages.
This amended guidance, which affects both origination and servicing, is effective until May 17, 2020,
This ML also announced alternatives that mortgagees can use to re-verify borrower’s employment for all FHA Single Family Title II forward mortgages and HECMs prior to settlement, where required, so long as certain other conditions are met.
Mortgagees can use the following alternatives to re-verify borrower’s employment:
- Year-to-date paystub or direct electronic verification of income dated immediately prior to the note date; or
- Bank statement showing a direct deposit from the borrower’s employer for the pay period that immediately precedes the settlement date.
NRMLA will keep the membership apprised of any additional policy changes from FHA resulting from COVID-19.