FHA Releases Handbook 4000.1 Sections on Title I Home Improvement and Manufactured Home Loan Programs | PC Weiner Brodsky Kider
On November 9, 2021, the FHA published the Title I Property Improvement and Manufactured Home Loans Programs sections of its Single Family Housing Policy Handbook 4000.1 (Handbook). All new content may be implemented immediately, but must be implemented by May 9, 2022, with the exception of new content in Section II: Origination through Post-Closing/Endorsement, which must be implemented for loans closed on or after May 9, 2022.
The Title I sections of the Manual consolidate existing guidance from approximately 120 Title I Letters to Lenders and other policy documents. The new sections also replace existing guidance for Title I prefabricated home loans, including lot and combination loans, and property improvement loans in the sections: (II) Origination through Post-Closing and endorsement; (III) maintenance and loss mitigation; and (IV) Claims and Disposition. Sections I (Doing Business with FHA) and V (Quality Control, Monitoring, and Compliance) have generally been updated and incorporated into the manual. The FHA noted that the new Title 1 sections, among other things, align employment and income requirements with FHA Title II loan programs, update fundable fees and charges (e.g., allow the use of donation funds from eligible sources) and expand evaluation options. .