HUD new guidelines for self-employed borrowers/disputed/collection accounts

HUD posted Mortgagee Letter 2012-3 on February 28, 2012. The following topics were covered in this Letter:

• Updated documentation requirements for self-employed borrowers

• New guidance on disputed and collection accounts

• Expansion of the current definition of family members for identity of interest transactions

The above changes are effective for case numbers assigned on or after 04/01/12 and will apply to all FHA insured loans except non-credit qualifying streamline refinance loans. Gateway will require all FHA locks on or after 04/01/12 to comply with the above guidelines.

For complete information regarding the above topics please refer to our BULLETIN section of the website under Guidelines & Announcements tab.