mortgagee letter 19-06 update: still business as usual As you may be aware, on April 18, 2019, FHA issued Mortgagee Letter (ML) 19-06 in an attempt to clarify the documentation requirements for governmental entities providing down payment assistance in conjunction with FHA-insured single family mortgages.
Although our understanding is that ML 19-06 was intended solely to address documentation requirements pursuant to HUD’s December 5, 2012 Interpretive Rule, a number of questions and concerns were raised by lenders across the nation regarding the application of ML 19-06 to state housing finance authorities, like CHFA, offering down payment assistance programs.
Today, FHA published ML 19-07, which announced an extension of the effective date of ML 19-06. As a result, the guidance provided in ML 19-06 will be effective for FHA Case Numbers assigned on or after July 23, 2019, rather than the originally published effective date of April 18, 2019.
CHFA will continue to work with others in the industry, including HUD, with respect to clarifying the requirements in ML 19-06. As always, we will keep you apprised of developments.
it’s business as usual. CHFA will not be updating documentation until further guidance is provided and required by HUD.
Please contact us for further information or questions.
CHFA Home Finance
303.297.7376 or 888.320.3688 Denver
970.241.2341 or 800.877.8450 Western Slope