FHA published an update to the Single Family Housing Policy Handbook (SF Handbook 4000.1). The update adds new guidance, eliminates outdated guidance, clarifies instructions, includes minor policy changes and technical edits, and incorporates previously published policy. Key changes in this update:
- Added definitions for written verification of employment, electronic verification of employment, and reverification of employment which clearly define the three types of verifications of employment available for documenting income during the underwriting process;
- Clarified that FHLB Set-Aside funds may be provided either as a grant or as secondary financing;
- Refined mortgage status to remove maximum arrearage for Outside the Waterfall loan modifications;
- Updated policy related to reasonable diligence in completing foreclosure (Standard) to add that mortgagees must not file an Extension and Variances Automated Requests System (EVARS) request for automatic extensions;
- Updated the compliance package list to include the most recent Home Equity Conversion Mortgage Life Expectancy Set Aside analysis and notice to borrower; and
- Added a new appendix (Appendix 6.1 Automatic Extension to HUD’s Initiation of Foreclosure Timeline) to include the list of automatic extensions.
Changes that are incorporated for previously published policy have an effective date as previously announced in the respective publication. All other changes are effective August 12, 2026.
Click to view the FHA Info #2026-18: https://www.tenaco.com/wp-content/uploads/2026/08/FHA-Info-2026-18-08-12-26.pdf
