On February 16, 2012, the Federal Housing Administration (FHA) published the final rule, “Suspension of Section 238(c) Single-Family Mortgage Insurance in Military Impacted Areas,” in the Federal Register (FR 2012-3667 www.gpo.gov/fdsys/pkg/FR-2012-02-16/pdf/2012-3667.pdf). The Section 238(c) program was suspended effective March 19, 2012.
All loans under Section 238(c) had to be endorsed no later than March 19, 2012. Therefore the “Military Impact Area Property” field prompt will be removed from ConformX. If for some reason the “Military Impact Area Property” field has been set to “Yes”, a warning message will be displayed for Closing Dates on or before March 19, 2012, and a hard stop error message will be displayed for Closing Dates after March 19, 2012:
The FHA mortgage insurance program for military impacted areas has been suspended. Endorsement for all loans under Section 238(c) of the National Housing Act was required no later than March 19, 2012.
These changes will take effect on August 11, 2012. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
August 6, 2012
TW 65768