October 14, 2019

October 14, 2019

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October 11, 2019

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HUD Extends Effective Date of New Requirements for Down Payment Assistance Provided by Government Entities

As previously reported, on April 18, 2019 the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2019-06 setting forth new documentation requirements for down payment assistance provided by government entities to be used in connection with Federal Housing Administration (FHA) loans. The requirements were effective for case numbers assigned on or after April 18, 2019. The immediate effective date affected many transactions already in process.

On April 25, 2019 HUD issued Mortgagee Letter 2019-07, which extends the effective date of the new requirements to July 23, 2019. The new requirements will apply to case numbers issued on and after such date. HUD advised it extended the effective date to allow time for governmental entities to prepare the documentation described in Mortgagee Letter 2019-06.

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About this Author

Richard J. Andreano, Jr. , Ballard Spahr Law Frim, Washington DC,  Business and Finance attorney, Mortgage Banking, Consumer Financial Services, Fair Lending

Richard J. Andreano, Jr., is the Practice Leader of Ballard Spahr's Mortgage Banking Group. He has devoted 30 years of practice to financial services, mortgage banking, and consumer finance law.

Mr. Andreano advises banks, lenders, brokers, home builders, title companies, real estate professionals, and other settlement providers on regulatory compliance and transactional matters, Federal Housing Administration (FHA) issues, and administrative examinations, enforcement actions and investigations. He also works with litigation counsel on devising strategies for defense of class action...

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