Cx899 is provided pursuant to the provisions of FHA MLs 97-26 & 91-9 and is a duplicate of the form attached to the latter letter. The purpose of the form is “to put settlement agents on notice of borrower obligations regarding downpayment requirements” and to inform settlement agents “that, if they have actual knowledge that the source of the funds is other than as described in the closing instructions, loan proceeds may not be disbursed and the mortgage lender must be contacted for further instructions.” (Ibid. 91-9)
Currently, this document is printing in all FHA loan Closing packages. Because this document is only required for purchase transactions (see Ibid. 97-26), we will be changing its configurations so that it will print when “Loan Purpose” is either “ConstructionOnly,” “ConstructionToPermanent,” or “Purchase.”
Cx8, which is also an addendum to the HUD-1, is currently being provided for Conventional, VA, and RD loans. In it, the borrower states that he has received a copy of, and reviewed, the HUD-1; the settlement agent also signs a statement stating that it was prepared to the best of his knowledge and ability. We will now begin printing this addendum for FHA loans as well. For the loans referred to in the previous paragraph, both Cx8 and Cx899 will print .
These changes will take effect on April 11, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
April 4, 2014