Special Attention of: Transmittal: All FHA-Approved ...

1 Special Attention of: Transmittal: Handbook All FHA-Approved Mortgagees Issued: April 19, 2021. All Direct Endorsement Underwriters Effective Date: August 17, 2021. All Eligible Submission Sources for Condominium Project Approvals All FHA Roster Appraisers All FHA-Approved 203(k) Consultants All HUD-Approved Housing Counselors All HUD-Approved Nonprofit Organizations All Governmental Entity Participants All Real Estate Brokers All Closing Agents 1. This Transmits: 1. Handbook , FHA Single Family Housing Policy Handbook. 2. Previously published updates to Handbook , FHA Single Family Housing Policy Handbook. 2. Explanation of Materials Transmitted: This revision to the FHA Single Family Housing Policy Handbook, or Handbook (Handbook), is being published to update existing sections.

2 Below is a list of content updates being made to the Handbook: Handbook Section Handbook Changes Page Number(s). Section II Origination Through Post-Closing /Endorsement (A)(2) Limited 203(k); Amended to increase the 372, 381, 389. (A) Limited 203(k) maximum total rehabilitation Eligible Improvements; costs from $35,000 to $50,000. Maximum Mortgage for the first 15,000 Mortgages Amounts for Energy Efficient endorsed each calendar year in Mortgages, Weatherization Items, Qualified Opportunity Zones and Solar Energy Systems (QOZ) only, per ML 2019-18. Handbook Section Handbook Changes Page Number(s). Sales Comparison Updated the FHA 594.

3 Approach for Manufactured Manufactured Housing criteria Housing for Appraisal comparable selection per ML 2020-48. Section III Servicing and Loss Mitigation Changes have been made 614-894. throughout this section. Section IV Claims and Disposition Borrower's Social Updated guidance for 896. Security Number; Borrower's Social Security (C) Claims Submitted Number for claim submission, via FHA Catalyst per ML 2020-38. (C)(2) FHA Catalyst: Updated guidance to establish a 899, 926, 928, 930, 931, Claims Module Standard; new claim submission method 941, 944. Submission of Claim through FHA Catalyst for Form Parts to HUD for certain claim types, per ML.

4 conveyance Claims; 2020-38. (C) Submission of Claim Form Parts to HUD for Hawaiian Home Land Mortgages;. (C)(1) Submission of Claim Form Parts for Section 248. Mortgages Submission of Claim Form Parts to HUD;. (B) Submission of Claim Form Parts to HUD for SFLS;. Submission of Claim Form Parts to HUD for CWCOT;. Submission of Claim Form Parts to HUD for PFS. Appendix FHA-Home Affordable Modification Program (FHA-HAMP) Calculations (Applies To Servicing Only). Appendix FHA-Home Added new appendix for FHA- 1063-1065. Affordable Modification Program Home Affordable Modification (FHA-HAMP) Calculations Program (FHA-HAMP).

5 (Applies To Servicing Only) Calculations (Applies To Servicing Only). Renumbered subsequent appendices. 2. Handbook Section Handbook Changes Page Number(s). Appendix HUD Schedule of Standard Possessory Action and Deed-In-Lieu of Foreclosure Attorney Fees (Applies to Servicing Only). Appendix HUD Schedule of This Appendix (formerly 1066-1067. Standard Possessory Action and Appendix ) provides a list of Deed-In-Lieu of Foreclosure allowable attorney fees for Attorney Fees (Applies to Possessory Action and Deed-in- Servicing Only) Lieu of Foreclosure, and links to the Fannie Mae Foreclosure and Bankruptcy Fees Throughout Document Various technical edits including 97, 98, 148, 340, 533, hyperlinks, punctuation, 534, 557, 915, 921, 942, formatting, grammar, spelling, 956, 974, 1022.

6 And capitalization. 3. Implementation: Unless noted otherwise in this transmittal, previously announced effective dates are not impacted by these Handbook changes. Handbook changes identified in Section 2 of this Transmittal may be implemented immediately, but must be implemented no later than August 17, 2021. 4. Public Feedback: HUD welcomes feedback from interested parties for a period of 30 calendar days from the date of issuance. To provide feedback on this policy document, please send any feedback to the FHA. Resource Center at HUD will consider the feedback in determining the need for future updates. 5. Superseded Policy: Previous versions of Handbook are amended as described in this Transmittal.

7 All previously superseded or canceled Mortgagee Letters, Housing Notices, and/or Handbooks remain canceled or superseded. All superseded or canceled policy documents will continue to be available for informational purposes only on HUD's website. Policy documents that have been superseded in full by the Handbook can always be found on HUD's Client Information Policy Systems (HUDCLIPS). web pages, accessible from the Single Family Housing Superseded Policy Documents page at 3. Mortgagee Letter(s) Superseded in Whole ML Number Update to the COVID-19 Forbearance Start Date and the COVID-19 Home 2021-04. Equity Conversion Mortgage (HECM) Extension Period Manufactured Housing Appraisal Sales Comparison Approach Update 2020-48.

8 Maximum Rehabilitation Costs in Qualified Opportunity Zones (QOZs) for 2019-18. Limited 203(k) Mortgages Mortgagee Letter(s) Superseded in Part ML Number Extensions of Single Family Foreclosure and Eviction Moratorium, Start Date 2021-05. of COVID-19 Initial Forbearance, and HECM Extension Period; Expansion of COVID-19 Loss Mitigation Options FHA Catalyst: Claims Module Expanded Functionality for conveyance , 2020-38. Single Family Loan Sales, Claims Without conveyance of Title, and Pre- Foreclosure Sale Claims and Phased Removal of Social Security Number Collection for Claim Submissions 6. Paperwork Reduction Act: The information collection requirements contained in this document have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 3501-3520) and assigned OMB control numbers 2502-0005; 2502-0059; 2502-0117; 2502-0189.

9 2502-0302; 2502-0306; 2502-0322; 2502-0358; 2502-0404; 2502-0414; 2502-0429; 2502-0494;. 2502-0496; 2502-0525; 2502-0527; 2502-0538; 2502-0540; 2502-0556; 2502-0561; 2502-0566;. 2502-0570; 2502-0583; 2502-0584; 2502-0589; 2502-0595; 2502-0600; and 2502-0610. In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB control number. 4. FHA Single Family Housing Policy Handbook HUD Handbook FHA Single Family Housing Policy Handbook USER QUICK GUIDE. Below are some helpful tips for using HUD Handbook , FHA Single Family Housing Policy Handbook (SF Handbook): 1.

10 The SF Handbook is organized in the sequence of a life cycle of a mortgage. 2. Effective dates are shown at the end of heading titles, at the 4th level ( , ) in parentheses. 3. Yellow highlighted text indicates the most recent updates to the SF Handbook. 4. Capitalization of words in the SF Handbook generally denotes terms that are defined in the Glossary. 5. Hyperlinks are included in the SF Handbook for easy navigation to a referenced section. Hyperlinks are indicated by blue, underlined text. Users can jump to the hyperlinked reference by clicking on the text. To navigate back to the hyperlink last used, click ALT+.