Document Updates: FHA Non-Purchasing Spouse (NPE) Authorization (Cx19872)

This document is provided pursuant to FHA Single Family Handbook 4000.1 Pt. II.A.1.a.i(C)(1)(a), which requires the following (cited in relevant part):

“. . . The Mortgagee must obtain a non-borrowing spouse’s consent and authorization where necessary to verify specific information required to process the mortgage application, including the non-borrowing spouse’s consent for the Mortgagee to verify their SSN with the Social Security Administration (SSA).”

After recently reviewing this document, we will be making the following changes:

• • We will be replacing the phrase “lender of the loan (Mortgagee)” in Clause 3 of the document with “’Mortgagee’ (as defined by FHA)”, in order to more accurately reflect FHA’s requirements, as well as add more flexibility to the authorization. Currently, “Mortgagee” is defined under FHA Handbook 4000.1 as either a “Title I Mortgagee” or “Title II Mortgagee”, the latter of which is further defined as:

“. . . a Mortgagee that has been approved to participate in Title II and/or Title XI programs under the National Housing Act (12 U.S.C. § 1707 et seq. and 12 U.S.C. § 1749aaa et seq.).” (Ibid. GLOSSARY)

Because a “Third-Party Originator” (aka a mortgage broker) “may be an FHA-approved Mortgagee or a non-FHA-approved entity” (Ibid.), it is more accurate to defer to FHA’s definition of the term “Mortgagee”, rather than to reference it in the common vernacular.

• For privacy purposes, the Social Security Number of the non-purchasing entity (which appears at the end of the form) will be masked.

These changes will take effect on October 10, 2020. Questions or concerns about these may be directed to Client Support at 1.800.497.3584.

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DR 329963