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NAN NEWSFLASH! Keeping you informed…

By January 23, 2015Mortgages

INSTRUCTIONS UPDATE

FHA INFO #15-06: Case Number Cancellation Authority

 This Single Family Housing News is to update and clarify to stakeholders on the Federal Housing Administration’s (FHA’s) temporary case number cancellation authority instructions that were issued to support Mortgagee Letter 2015-01, Reduction of FHA Annual MIP Rates and Temporary Case Cancellation Authority that was reissued on January 13, 2015.

Mortgagee Letter 2015-01  implemented the reduction of FHA Annual Mortgage Insurance Premium (MIP) rates by 50 basis points (0.50%) for most Single Family Title II forward mortgages beginning January 26th.

This update is to provide additional clarity for the case number cancellation authority instructions issued on January 9, 2015, including:

  • The February 25, 2015 expiration date of the temporary case number cancellation authorization
  • Revised requirements for bulk case cancellation
  • Appraisal ordering and handling instructions
  • Appraisal logging instructions

 

“These are positive changes happening in our industry right now that should be giving borrowers confidence in the systems in place.” Said Cari Burris, Co-Founder & Director of Operations at NAN. Recent FHA updates have them saving 0.50% on annual premiums in addition to the elimination of post-settlement interest on FHA mortgages effective of January 26, 2015.  Every little bit helps”!

Case Number cancellations began on January 15, 2015.  All Case Number Cancellation Requests under this temporary authority must be submitted by 11:59 p.m., Eastern, on February 26, 2015.  Mortgagees should not order new Case Numbers under this temporary authority until they have confirmed in FHA Connection that the previous Case Number has been cancelled.

GREAT NEWS FOR NAN CLIENTS! No appraisal update is required if a case number was previously pulled. Mortgagees should cross out the case number on the existing appraisal and write the correct case number on the appraisal in order to avoid delays in endorsement or post endorsement review.  If an appraisal was ordered prior to obtaining a case number, the case number must be assigned on or after January 26, 2015 and inserted into the appraisal prior to delivery to the mortgagee.

“Indeed, exciting news for borrowers and lenders alike”, added Cristy Conolly, Director of Quality Assurance & Compliance.  “NAN is proactively preparing our staff and appraiser vendors to ensure smooth and timely completion of any necessary appraisal updates.  We’ve created a message appraisers view as soon as they log on to our portal providing updates and information on this upcoming change so they’re informed and there will be no delays in processing this for our clients and borrowers”.

Quick Links and Resources

         View the reissued version of Mortgagee Letter 2015-01.

         Access the Annual MIP Case Number Request Cancellation Instructions document specific to Mortgagee Letter 2015-01.

         Contact the FHA Resource Center:

        Visit HUD’s online knowledge base to obtain answers to frequently asked questions 24/7 at www.hud.gov/answers.

ABOUT NATIONWIDE APPRAISAL NETWORK- NAN is an industry leader in appraisal management, providing a unique approach to appraisal management through customization, innovation, and quality. NAN website  – 888.760.8899

 

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