FHA issued a waiver regarding early payment default review requirements for properties Impacted by Hurricanes Harvey, Irma and Maria, and California wildfires. FHA currently requires lenders to select all early payment defaults on a monthly basis and perform a loan file compliance review to insure compliance with FHA Single Family origination and underwriting requirements. The current early payment default review policy is waived for FHA-insured mortgages that: (1) are secured by properties impacted by Hurricanes Harvey, Irma and Maria, and California Wildfires; (2) were closed prior to the disaster’s “incident period” (as determined by FEMA); and (3) entered early payment default between the dates of September 1, 2017, and February 28, 2018. In addition, due to the large number of properties damaged by Hurricane Maria in Puerto Rico, FHA has temporarily waived the 15-day occupancy period under the Limited 203(k) program. The temporary waiver allows for the use of the Limited 203(k) program when financing minor repairs that will prevent the borrower from occupying the property for more than 15 days. The waiver applies to 203(k) mortgages closed on or before June 30, 2018.
Click here to view the FHA Info 18-03 (01-24-18)
Click here to view the FHA Waiver of Housing Directive – Early Payment Default Review
Click here to view the FHA Waiver of Housing Directive – Limited 203(k) Loans
