Secretary of Housing and Urban Development (HUD) Scott Turner announced Thursday that his department had waived a key rule that could affect Federal Housing Authority (FHA)-backed loans, to help victims of recent wildfires in Los Angeles.
A HUD press release detailed the regulatory change:
FHA issued a waiver regarding early payment default review requirements for properties impacted by the California wildfires. FHA currently requires lenders to select all early payment defaults on a monthly basis and perform a loan file compliance review to ensure compliance with FHA Single Family origination and underwriting requirements. Per the waiver, the early payment default review requirement is waived for FHA-insured mortgages that: (1) are in the Presidentially Declared Major Disaster Areas for California Wildfires and Straight-Line Winds (DR-4856-CA); (2)
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