Update: HUD Mortgagee Letters and Down Payment Assistance
|This Community Investment Advisory is an updated communication to the Advisory we issued on May 1, 2019.
On April 25, 2018, the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2019-07. The letter extended the effective date of Mortgagee Letter 2019-06 to July 23, 2019, for down payment assistance provided by governmental entities used in connection with Federal Housing Administration (FHA) insured mortgage loans. This requirement would have directly affected the Federal Home Loan Bank of Chicago’s (FHLBank Chicago) Downpayment Plus® (DPP®) Program for FHA case numbers assigned on or after July 23, 2019.
Over the last several days, the FHLBank Chicago has seen various reports that the United States District Court for the District of Utah has granted a preliminary injunction, preventing Mortgagee Letter 2019-06 from becoming effective, as planned, on July 23, 2019 However, at this time we have not received official notification from HUD.
In anticipation of the July 23 effective date, the FHLBank Chicago prepared an updated letter to use for all FHA case numbers assigned on or after July 23, 2019. In cases where DPP is used to fund the borrower’s Minimum Required Investment (MRI), the letter may be generated directly from DPP Online, and this will be available July 23, 2019, regardless of the reported injunction. The contents of this updated letter comply with the existing HUD Mortgagee Letter, and merely add some additional elements that Mortgagee Letter 2019-06 required.
Once the FHLBank Chicago receives official notice from HUD as to the status of Mortgagee Letter 2019-06, we will follow up with a further notification regarding the attorney opinion.
Please contact Community Investment at 312-565-5824, option 1, or email@example.com with any questions.
|Federal Home Loan Bank of Chicago|
|200 East Randolph Drive
Chicago, IL 60601
|Copyright © 2019, Federal Home Loan Bank of Chicago.|
|"Downpayment Plus" and "DPP" are registered trademarks of the Federal Home Loan Bank of Chicago.