On December 15, 2014 HUD announced (inter alia) updates to form HUD-92900-B (“Important Notice to Homebuyers”), currently required under FHA ML 2005-03 & 1995-31, and the “Informed Consumer Choice Disclosure,” currently required under 24 CFR § 203.9 and Supra 2000-46 & 1999-23 (see FHA INFO #14-74). We provide copies of these documents as Cx40 and Cx41, respectively.
Due to the upcoming changes to prepayments for FHA loans (see 79 FR 50835 ), form HUD-92900-B has primarily been updated to include language in the “About Prepayment” section explaining that FHA mortgages closed on or after January 21, 2015 may only be subject to interest charges up until prepayment, rather than accrued interest after prepayment (a copy of the form may be downloaded at http://portal.hud.gov/hudportal/documents/huddoc?id=92900-b.pdf).
The “Informed Consumer Choice Disclosure” is now a model form (as opposed to a sample form), with an OMB Approved Number (it is also available online at http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/model_documents). However, the regulations for this document do require that the loan information table, which appears within the middle of the model form, be updated periodically to “reflect prevailing market conditions” (see 24 CFR § 203.9[d]).
We will be updating Cx40 and Cx41 to more closely match these two forms. However, we will be deviating from the “Informed Consumer Choice Disclosure” by removing the instructions which appear at the beginning of the form. Since this section is being removed, we will also be removing the OMB Approval Number. We will also be printing our standard logic table at the beginning of the document, along with a date, plus adding signature lines at the end of the document. We will continue to print the “prevailing market conditions” loan terms which are currently printing on Cx41, rather than the numbers which appear on the model form, since the terms currently printing are more reflective of prevailing market conditions.
In addition, we will be configuring new “Important Notice to Homebuyers Supplemental Notice” (Cx19127) to no longer print and configuring “Section 184 Important Notice to Homebuyers Supplemental Notice” (Cx19126) to print when:
- “FHA Case Number Assignment Date On or After 11/15/2014” equals “Yes”; and
- “Closing Date On or After 01/21/2015” equals “Allow Any”.
The reason for these changes is that, while there is no longer a need to clarify prepayments in Cx19127 (as explained in further detail in our announcement “Document Updates: Various FHA and VA Documents”), there is still a need to clarify annual charges for Section 184 loans; hence the reason for keeping Cx19126 (also explained in further detail in our announcement “Program Updates: Section 184 Indian Home Loan Guarantee Program”).
Since, according to FHA, the updated documents may be used now, these changes will take effect on December 27, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
December 22, 2014
DR 162075 & 162079