August 21, 2019

In This Issue:

  • Sen. Brandon Creighton Honored With Outstanding Legislator Award
  • Notice to Public and to All Interested Mortgage Lenders: Mortgage Credit Certificate Program
  • HUD Officially Abandons New Rules for Down Payment Assistance on FHA Mortgages
  • HUD Expands Section 220 Program to All Opportunity Zones

Sen. Brandon Creighton Honored With Outstanding Legislator Award

TLTA | Aug. 19, 2019
Sen. Brandon Creighton, the Texas legislator who authored two of our industry's priority bills during the recent legislative session, was honored with TLTA's Outstanding Legislator Award at a lunch in The Woodlands Monday, Aug. 19.

More than 30 title industry attendees, including the TLTA Legislative Liaison assigned to Sen. Creighton, John Kulasa, attended the celebration of Sen. Creighton's leadership.
 

Brian Brewer, Sen. Creighton, Craig Steindorf, Pat Roach and Melissa Beaudion
 
Additional Event Photos »
 
Sen. Creighton, who chairs the Senate's Higher Education Committee and the Select Committee on Texas Ports, is a valued friend who continues to demonstrate his support for our industry and the consumers we serve. 
 
Learn more about Sen. Creighton's good work on behalf of Texas consumers in TLTA's 86th Session legislative report.


Notice to Public and to All Interested Mortgage Lenders: Mortgage Credit Certificate Program

Texas Department of Housing and Community Affairs | Aug. 16, 2019
The Texas Department of Housing and Community Affairs (the Department) intends to implement a Mortgage Credit Certificate Program (the Program) to assist eligible very low, low, and moderate income first-time homebuyers with the purchase of a residence located within the State of Texas.
 
Under the Program, a first-time homebuyer who satisfies the eligibility requirements described herein may receive a federal income tax credit in an amount equal to the product of the certificate credit rate established under the Program and the interest paid or accrued by the homeowner during the taxable year on the remaining principal of the certified indebtedness amount incurred by the homeowner to acquire the principal residence of the homeowner; provided that, if the certificate credit rate established under the Program exceeds 20%, the amount of such credit allowed in any taxable year may not exceed $2,000. In order to qualify to receive a mortgage credit certificate, the homebuyer must qualify for a conventional, FHA, VA, USDA or other home mortgage loan from a lending institution and must meet the other requirements of the Program.
 
The mortgage credit certificates will be issued to qualified mortgagors on a first-come, first-served basis by the Department, which will review applications from lending institutions and prospective mortgagors to determine compliance with the requirements of the Program and determine that mortgage credit certificates remain available under the Program. No mortgage credit certificates will be issued prior to ninety (90) days from the date of publication of this notice or after the date that all of the credit certificate amount has been allocated to homebuyers, and in no event will mortgage credit certificates be issued later than the date permitted by federal tax law.

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HUD Officially Abandons New Rules for Down Payment Assistance on FHA Mortgages

HousingWire | Aug. 19, 2019
The Department of Housing and Urban Development announced late last week that is officially bailing on a contentious set of changes to its rules for down payment assistance on mortgages insured by the Federal Housing Administration after the initial proposal led to the agency being sued.

Last week, HUD issued a new mortgagee letter, 2019-12, which retracts the agency’s original changes to the down payment assistance rules and all subsequent actions in the matter.

Earlier this year, HUD announced that it would be issuing new rules on down payment assistance on FHA mortgages, citing potential issues with some “entities” that may have been operating outside of the agency’s rules.

According to HUD and the FHA, the “informal guidance” was meant to provide clarity around what documentation would be required for borrowers who are using funds from another person or entity to cover part of the FHA’s minimum down payment requirement of 3.5%.

But, according to the Cedar Band of Paiutes, a federally recognized American Indian band that operates the Cedar Band Corp. and the CBC Mortgage Agency, the rules had far-reaching and damaging consequences, and effectively put its down payment assistance program out of business.
 
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HUD Expands Section 220 Program to All Opportunity Zones

NMP | Aug. 9, 2019
Housing and Urban Development (HUD) Secretary Ben Carson has announced the Federal Housing Administration (FHA) will insure mortgages on mixed-use developments under the agency’s Section 220 Program in the lower income communities participating in the Opportunity Zones program.
 
FHA’s Section 220 Program insures lenders against loss on mortgage default and has been used for urban rental housing in areas targeted for overall revitalization. Carson’s announcement expands eligibility of mortgages insured under this program to all 8,764 Opportunity Zone localities, including those in rural areas.
 
“By expanding this program’s reach, we hope to significantly boost private investment in Opportunity Zones and generate growth in development in neighborhoods that need it most,” said Carson. “With expanded mixed-used development in Opportunity Zones comes economic revitalization and job growth which is just what the doctor ordered for residents living in these communities.”
 
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