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

1 Special Attention of: Transmittal: Handbook All FHA-Approved Mortgagees Issued: November 9, 2021 All Direct Endorsement Underwriters Effective Date: May 9, 2022 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: Handbook , FHA Single Family Housing Policy Handbook, Title I content.

2 2. Explanation of Materials Transmitted: This update to the FHA Single Family Housing Policy Handbook, or Handbook , is to incorporate guidance for FHA s Title I program. The following sections have been added to Handbook : Title I programs Voluntary Withdrawal of Title I Lender Contract of Insurance Chattel Appraisers (for Title I Loans) Title I Property Improvement Dealers Title I Manufactured Home Dealers Title I Insured programs Appraiser and Property Requirements for Title I Title I Insured programs Title I Claims Title I Disposition (D)

3 Title I loan Disbursement Title I Dealers Property Improvement Loans Title I Dealers Manufactured Home Loans Title I Lender Monitoring Reviews Title I loan Reviews Withdrawal of Title I Manufactured Housing Direct Endorsement Authority Termination of Title I Lender Contract of Insurance 2 Existing content in the following sections has been updated to incorporate Title I guidance: FHA Lenders and Mortgagees Institutional Quality Control Program Requirements loan Level Quality Control Program Requirements 3.

4 Implementation: These updates do not impact previously announced effective dates for Handbook All new content may be implemented immediately, but must be implemented by May 9, 2022, except for the new content in Section II: Origination through Post-Closing/Endorsement, which may be implemented immediately, but must be implemented for loans closed on or after May 9, 2022. 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 5. Superseded Policy: Previous versions of Handbook are amended as described in this Transmittal. All previously superseded or canceled Mortgagee Letters, Housing Notices, Title I Letters and/or Handbooks remain canceled or superseded.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 Handbooks Superseded in Whole Number Title I Property Improvement and Manufactured Home loan Regulations.

6 24 CFR Parts 201 and 202 Title I Property Improvement loan Operating Lender Approval Requirements Specified in 24 CFR Part 202 Title I Mobile Home loan Operating Title I Letters Superseded in Whole Number FHA Consolidation of Title I and Title II Lender Identification Numbers TI-486 Modifications to the Home Energy Retrofit loan Pilot Program (FHA PowerSaver Pilot Program) TI-485 3 Title I Letters Superseded in Whole Number Change to Periodic (Annual) Insurance Premium Collection and Billing Process Implementation of TI-483 Increased Maximum loan Limits for Title I Manufactured Home Loans TI-480 Transfer of HMDA Data Collection to Federal Reserve Board TI-479 Electronic Payment of the Annual Recertification Fee and Downloading of the Yearly Verification Report via the FHA Connection TI-478 FHA Connection for Title I loan Reporting TI-477 Changed text for the Notice to Borrower of HUD's Role in Title I Loans and Notice of Default and Acceleration TI-476 Temporary

7 Suspension of Authority to Insure Under Title I of the National Housing Act TI-475 Temporary Suspension of Authority to Insure Under Title I of the National Housing Act TI-474 Mandatory Electronic Submission of Financial Statement Package for Annual Lender Recertification TI-03-1 Publication of Final Rule on November 7, 2001 Regarding: Strengthening the Title I Property Improvement and Manufactured Home loan TI-473 Reinstatement of General Insurance Endorsement Authority TI-472 Temporary Suspension of Authority to Insure Under Title I of the National Housing Act TI-471 Clarifications to the Title I Property Improvement Program TI-470 FHA Connection Lender Approval Functions.

8 Adding Branches, Maintaining Institution Data, and Determining Recertification Fees TI-469 Consolidation of Title I Activities in the Financial Operations Center TI-468 Change in Procedure to Notify Lenders About Special Title I Assistance to Victims in Presidentially Declared Major disaster Areas TI-467 Special Title I Assistance to Victims in Presidentially Declared Major disaster Areas TI-466 Special Title I Assistance to Victims in Presidentially Declared Major disaster Areas TI-465 Special Title I Assistance to Victims in Presidentially Declared Major disaster Areas

9 - California, New Mexico and Additional Counties Added TI-464 Special Title I Assistance to Victims in Presidentially Declared Major disaster Areas - North Carolina, Vermont, New Hampshire and an Additional County TI-463 Lender List on the World Wide Web TI-462 Special Title I Assistance to Victims in Presidentially Declared Major disaster Areas - ME, TN, NY, FL, GU, & Northern Mariana Island TI-461 Appraisals on Repossessed Manufactured Homes Classified as Personal Property TI-460 Special Title I Assistance to Victims in Presidentially Declared Major disaster Areas - Nebraska TI-459 4 Title I Letters Superseded in Whole Number Special Title I Assistance to Victims in Presidentially Declared Major disaster Areas - Minnesota TI-458 Special Title I Assistance to Victims in Presidentially Declared Major disaster Area - Colorado TI-457 Special Title I Assistance to Victims in Presidentially

10 Declared Major disaster Areas - Alabama, Vermont, Washington State and Michigan TI-456 Special Title I Assistance to Victims in Presidentially Declared Major disaster Areas - Mississippi TI-455 Special Title I Assistance to Victims in Presidentially Declared Major disaster Areas - Texas and Wisconsin TI-454 Planned Reform of the Property Improvement loan Program TI-453 Mandate for Electronic Funds Transfer (EFT) for Title I Claims TI-452 Major disaster Areas - Additional Counties added to the Previous disaster Declarations for Minnesota TI-451 Special Title I Assistance to Victims in Presidentially Declared Major disaster Areas - Arkansas TI-450 Declared Major disaster Areas - Minnesota, North Dakota, South Dakota.