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FHA Extends Single-Family Handbook Effective Date to Sept. 14

May 1, 2015--Sorohan, Mike
FHA announced yesterday that it extended the effective date for the policies contained within its new Single-Family Housing Policy Handbook from June 15 to September 14.

FHA said it granted the extension ( to give lenders more time to operationalize and become fully compliant.

“FHA recognizes that there currently are a number of competing initiatives occurring simultaneously in the mortgage industry that may be challenging mortgagee and other industry partner resources,” FHA said. “For this reason, FHA is extending the SF Handbook effective date by 90 days with the expectation that this additional time will enable mortgagees and others to be fully compliant with the new effective date.”

Pete Mills, senior vice president of residential policy and member services with the Mortgage Bankers Association, said the extension is “an important step in bringing greater clarity and certainty to FHA’s complex underwriting rules and standards.” He said MBA had asked HUD to delay implementation until Dec. 1.

“Because the new handbook also includes a number of policy changes and clarifications that will require operational and systems revisions by lenders, the original June 15 implementation date simply was not feasible in light of the ‘all hands on deck’ efforts by lenders to complete implementation, training and testing of the new TILA-RESPA Integrated Disclosures by August 1,” Mills said.

The revised FHA Handbook integrates hundreds of Mortgagee Letters and other policy pronouncements accumulated over decades into a single living handbook that will be updated in real time going forward.

The 90-day extension is effective for all SF Handbook published sections ( This includes:

• Updates to the Origination through Post-Closing/Endorsement for Title II Forward Mortgages section;
• Doing Business with FHA--Lenders and Mortgagees section;
• Quality Control, Oversight and Compliance section;
• 203(k) Rehabilitation Mortgage Insurance Program policies subsection;
• 203(k) Consultant requirements subsection;
• Appraiser and Property Requirements for Title II Forward and Reverse Mortgages subsection; and,
• Appraisal Report and Data Delivery Requirements guide.

For a list of Frequently Asked Questions regarding the Single-Family Handbook, click