According to FHA Single Family Handbook 4155.2 ch. 6.B.2, security instruments for loans to be insured by FHA must be based on the FHA Model Mortgage Form (found in Ibid. ch. 12.A.1), with modifications as set forth by FHA. The instructions set forth in Clause (c) of this Section stipulate the following:
“The lender must use the FHA ‘Uniform Covenants’ in Paragraphs 1 – 16 on the Model Mortgage Form verbatim, rather than the Fannie Mae/Freddie Mac ‘Uniform Covenants,’ which are substantially different from FHA policy.
The lender must consult with FHA if it concludes that information in paragraphs 1 – 16 does not meet state or local requirements. The lender cannot make changes without prior FHA approval.” (emphasis in original)
Within the Uniform Covenants of the Model Mortgage Form is a citation to the Department of Housing and Urban Development’s (HUD) version of Regulation X (24 CFR Pt. 3500). While this version of Regulation X is still considered “good law” (i.e. it has not been repealed), nearly all mortgage lenders are now governed by the Consumer Financial Protection Bureau’s (CFPB) version of Regulation X (12 CFR Pt. 1024) and a citation to this version would be more appropriate.
Pursuant to FHA’s requirements, and with the help of a client, we have received permission from HUD to update the citation and are proceeding to do so. These edits will be pushed out as we complete them, starting today, December 6, 2013. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
December 6, 2013