HUD Mortgagee Letters and Down Payment Assistance


HUD Mortgagee Letters and Down Payment Assistance
May 1, 2019 On April 18, 2019, the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2019-06, setting forth updated documentation requirements for down payment assistance provided by governmental entities used in connection with Federal Housing Administration (FHA) insured mortgage loans. This requirement directly affects the Federal Home Loan Bank of Chicago’s (FHLBank Chicago) Downpayment Plus^® (DPP^®) Program for FHA case numbers assigned on or after April 18, 2019. On April 25, 2019, HUD issued Mortgagee Letter 2019-07 extending the effective date of the new requirements to July 23, 2019. This 90-day extension allows governmental entities additional time to prepare the documentation outlined in Mortgagee Letter 2019-06. FHLBank Chicago is reviewing the new requirements. Guidance will be issued to participating DPP Program members as updated documentation and more information becomes available. Please contact Community Investment at 312-565-5824, option 1, or dpp@fhlbc.com with any questions.
Federal Home Loan Bank of Chicago
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This advisory contains forward-looking statements which are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “anticipates”, “believes,” “expects,” “could,” “plans,” “estimates,” “may,” “should,” “will,” or their negatives or other variations on these terms. We caution that, by their nature, forward-looking statements involve risk or uncertainty, that actual results could differ materially from those expressed or implied in these forward-looking statements, and that actual events could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the risk factors set forth in our periodic filings with the Securities and Exchange Commission, which are available on our website at www.fhlbc.com. We assume no obligation to update any forward-looking statements made in this advisory. "Downpayment Plus" and "DPP" are registered trademarks of the Federal Home Loan Bank of Chicago.