[Federal Register Volume 79, Number 196 (Thursday, October 9, 2014)]
[Proposed Rules]
[Pages 61020-61021]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24069]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Chapter II

[Docket No. FR-5817-N-01]


Federal Housing Administration (FHA): Solicitation of Comment on 
Streamline Refinance Provisions in the FHA Single Family Housing Policy 
Handbook

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Solicitation of comment.

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SUMMARY: On September 30, 2014, FHA issued the FHA Single Family 
Housing Policy Handbook section for Title II Insured Housing Programs 
Forward Mortgages: Origination through Post-Closing/Endorsement, 
Handbook 4000.1. The goal of the new FHA Single Family Housing Policy 
Handbook (Handbook) is to streamline and ease the implementation of 
FHA's various programs by consolidating and organizing all of FHA's 
Single Family policy into one document. FHA will be issuing other 
individual sections of the Handbook as they are completed. As part of 
the consolidation of policy pertaining to streamline refinance 
transactions, FHA has taken the opportunity to integrate the language 
pertaining to streamline refinance transactions in Mortgagee Letters 
2013-29, 2011-11, 2009-32 and 2008-40 into a refined mortgage payment 
history and calculation of the maximum insurable mortgage for the 
streamline refinance program. Prior to adopting in the Handbook as 
final this refined maximum insured mortgage calculation for streamline 
refinance transactions, HUD seeks public comment on this language as 
presented in the Handbook.

DATES: Comment Due Date: November 10, 2014.

ADDRESSES: Interested persons are invited to submit comments regarding 
this document to the Regulations Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
10276, Washington, DC 20410-0500. Communications must refer to the 
above docket number and title. There are two methods for submitting 
public comments. All submissions must refer to the above docket number 
and title.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW., Room 10276, 
Washington, DC 20410-0500.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make them immediately available to 
the public. Comments submitted electronically through the 
www.regulations.gov Web site can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note: To receive consideration as public comments, comments must 
be submitted through one of the two methods specified above. Again, 
all submissions must refer to the docket number and title of the 
document.

    No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
    Public Inspection of Public Comments. All properly submitted 
comments and communications submitted to HUD will be available for 
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the 
above address. Due to security measures at the HUD Headquarters 
building, an appointment to review the public comments must be 
scheduled in advance by calling the Regulations Division at 202-708-
3055 (this is not a toll-free number). Individuals with speech or 
hearing impairments may access this number via TTY by calling the 
Federal Relay Service at 800-877-8339. Copies of all comments submitted 
are available for inspection and downloading at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Elissa Saunders, Deputy Director, 
Office of Single Family Program Development, Office of Housing, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
9278, Washington, DC 20410; telephone number 202-708-2121 (this is not 
a toll-free number). Persons with hearing or speech impairments may 
access this number through TTY by calling the toll-free Federal Relay 
Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: 
    Payment history standards related to streamline refinances are 
currently found in Handbook HUD 4155.1, entitled Mortgage Credit 
Analysis for Mortgage Insurance on One- to Four-Unit Mortgage Loans, in 
sections 3.A.1.h., but have subsequently been modified by Mortgagee 
Letters, including those referenced above. The Maximum Insurable 
Mortgage Calculation for streamline refinances is found in section 
3.C.2.c.
    In an effort to ease program implementation and reduce burden on 
lenders, servicers, borrowers, and interested members of the public, 
FHA, as noted in the Summary of this document, is consolidating and 
reorganizing its guidance into a new, comprehensive FHA Single Family 
Housing Policy Handbook (Handbook), which, once effective, will 
supersede all mortgagee letters and prior handbook provisions whose 
content has been incorporated into the Handbook. This consolidation and 
reorganization alleviates unnecessary burdens on lenders, servicers, 
and borrowers who have had to keep track of individual policy changes 
published in individual mortgagee letters, and gives all interested 
parties one place to find important program requirements.
    The Handbook section for Title II Insured Housing Programs Forward 
Mortgages--Origination through Post-Closing/Endorsement was issued on 
September 30, 2014, at http://portal.hud.gov/hudportal/documents/huddoc?id=40001HSGH.pdf and will be effective for case numbers assigned 
on or after June 15, 2015. Due to the timing of the pre-scheduled 
release of the Handbook and the complexity of incorporating and 
organizing the various guidance documents for streamline refinances 
noted above, and eliminating extraneous examples, HUD has opted, in an 
abundance of caution, to seek public comment on the refined maximum 
mortgage amount calculation provision and payment history for the 
streamline refinance program which can be found in Paragraphs (4)(b) 
and (j) of II.A.8.d.vi.(C) ``Streamline Refinances'' in the Title II 
Insured Housing Programs Forward Mortgages section of the Handbook. The 
public comments received on these provisions will be given 
consideration, and notification will be provided of changes, if any, 
made to this section of the Handbook.
    Given the significant transition period that FHA is providing 
between the posting of the Handbook and the effective date of the 
Handbook, FHA does not anticipate having to change the effective date 
as a result of any changes

[[Page 61021]]

that may be made to the streamline refinance section of the Handbook.

    Dated: October 3, 2014.
Carol J. Galante,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2014-24069 Filed 10-8-14; 8:45 am]
BILLING CODE 4210-67-P