FHA guideline changes: every announcement, summarized with effective dates

Applies to: Applies to all FHA-insured Title II Single Family forward mortgage programs.

What to review: Review the updated Minimum Decision Credit Score calculation rules, the requirement to use uniform credit score model types across all borrowers on a transaction, and the credit report retention mandate effective for case numbers assigned on or after January 1, 2027. AWACS interpretation

Applies to: FHA Section 203(k) Rehabilitation Mortgage Insurance Program transactions, including Limited 203(k) and Standard 203(k) mortgages.

What to review: Review the updated 203(k) draw administration flexibility permitting up to four draw requests per contractor with up to two disbursements each on Limited 203(k) loans and clarifying multiple disbursements per draw on Standard 203(k) loans. AWACS interpretation

Applies to: All FHA-insured Title II Single Family forward mortgage programs.

What to review: Review the rescission allowing mortgagees to stop providing Form HUD-92900-B to borrowers and eliminating the need to obtain and retain an executed copy. AWACS interpretation

Applies to: Applies to all FHA-insured Title II Single Family forward mortgages undergoing loss mitigation or trial payment plans.

What to review: Review default servicing and loss mitigation workflows to implement mandatory SFDMS reporting for third-time Trial Payment Plan non-acceptances and required evaluations for Home Disposition Options by September 21, 2026. AWACS interpretation

Applies to: All FHA-insured mortgages, with quality control sampling exceptions for early payment defaults on properties located in Presidentially-Declared Major Disaster Areas.

What to review: Review the new Quality Control sampling exception that permits excluding qualifying disaster-impacted Early Payment Defaults, as well as the eliminated requirements for Officer in Charge exclusivity, staff guidance access, and noncompliance pattern reviews. AWACS interpretation

Applies to: All FHA-insured mortgage programs selected for origination and underwriting quality control review.

What to review: Review quality control policies to determine whether to adopt the optional flexibility removing the at least 10 percent appraisal field review requirement. AWACS interpretation

Applies to: Applies to all FHA-insured Title II Single Family forward mortgages facing foreclosure or Post-Foreclosure Sales Efforts, except Hawaiian Home Lands Mortgages and Insured Mortgages on Indian Land.

What to review: Review foreclosure bidding guidelines, default reporting workflows, and appraisal upload procedures to ensure mandatory CAFMV bidding and reporting updates are established for sales scheduled on or after April 29, 2026, alongside new options to bid below CAFMV. AWACS interpretation

Applies to: Applies to all FHA-insured Title II Single Family forward and Home Equity Conversion Mortgage (HECM) loans involved in a sale of a beneficial interest in a group of mortgages.

What to review: Review the mandatory requirements to submit unexecuted Declaration of Trust packages to FHA via LEAP and secure approval prior to executing any sale of a beneficial interest no later than January 31, 2026. AWACS interpretation

Applies to: FHA-insured Single-Family Title II forward mortgage and Home Equity Conversion Mortgage (HECM) programs.

What to review: Review FHA appraiser onboarding and roster management procedures immediately to confirm that Form HUD-92563-A is completed and signed electronically in FHAC and that appraiser names align exactly with the ASC National Registry. AWACS interpretation

Applies to: FHA Title II Home Equity Conversion Mortgage (HECM) loans with case numbers assigned on or after January 1, 2026.

What to review: Review the updated 2026 Home Equity Conversion Mortgage Maximum Claim Amount limit of $1,249,125 that becomes available for case numbers assigned on or after January 1, 2026. AWACS interpretation

Applies to: FHA Title II forward mortgage loan limits effective for case numbers assigned on or after January 1, 2026.

What to review: Review the updated 2026 nationwide forward mortgage loan limits across low-cost, high-cost, and special exception areas for Title II forward mortgages with case numbers assigned on or after January 1, 2026. AWACS interpretation

Applies to: This guidance applies to all FHA Title II Single Family forward mortgage programs, excluding Home Equity Conversion Mortgages.

What to review: Review origination and compliance processes to take advantage of the immediate rescission of the Supplemental Consumer Information Form requirement for FHA Title II Single Family forward mortgages. AWACS interpretation

Applies to: All FHA Title II forward mortgage and Home Equity Conversion Mortgage (HECM) programs.

What to review: Review the flexibility permitting part-time employment and experience for Direct Endorsement underwriters, ensuring staffing policies still enforce permanent employment with a single mortgagee and prohibit contracting out underwriting duties. AWACS interpretation

Applies to: FHA-insured Single Family Title II forward mortgage and Home Equity Conversion Mortgage (HECM) programs.

What to review: Review the immediate rescission of appraisal requirements regarding remaining economic life, non-standard photographs, changing-market comparables, and Section 223(e) protocols to streamline appraisal and underwriting review processes. AWACS interpretation

Applies to: All FHA-insured Single Family Title II forward mortgages on properties located in Presidentially-Declared Major Disaster Areas designated for individual assistance prior to endorsement.

What to review: Review immediately the rescission of mandatory pre-endorsement PDMDA damage inspection reports and the implementation of due diligence, repair completion, and Case Binder documentation standards for affected properties. AWACS interpretation

Applies to: Defaulted FHA-insured mortgages undergoing CWCOT post-foreclosure sales efforts and HUD single-family REO properties.

What to review: Review the mandatory updates to the 60-day CWCOT post-foreclosure sales period, vendor auction disclosures, 30-day conveyance deadlines, default reporting codes, and electronic claim filing timeframes effective May 30, 2025. AWACS interpretation

Applies to: All FHA Title II Single Family forward and Home Equity Conversion Mortgage (HECM) programs.

What to review: Review the updated residency eligibility rules that eliminate non-permanent resident eligibility and mandate lawful permanent residency determination and documentation on the URLA and RLARM for case numbers assigned on or after May 25, 2025. AWACS interpretation

Applies to: FHA Single Family Title II forward and Home Equity Conversion Mortgage (HECM) programs.

What to review: Review the immediately effective restored appraisal review requirements, underwriter reconsideration of value procedures, and second appraisal documentation and fee payment rules. AWACS interpretation

Applies to: FHA Title II Single Family forward mortgages where rental income from boarders of the subject property is used to qualify the borrower.

What to review: Review updated underwriting flexibilities allowing rental income from existing boarders for occupying borrowers who rent or own, along with documentation criteria and calculation caps. AWACS interpretation

Applies to: FHA Title II Single Family mortgage programs subject to Title II servicing loan reviews.

What to review: Review the updated Appendix 8.0 defect taxonomy sections and new servicing defect categories applicable to Title II loan reviews initiated on or after January 15, 2025. AWACS interpretation

Applies to: All FHA-approved mortgagees originating or servicing FHA-insured mortgages that experience a reportable cyber incident.

What to review: Review the immediate requirement to notify HUD of reportable cyber incidents within 36 hours of determination along with all mandated incident and contact details. AWACS interpretation

Applies to: FHA-insured mortgages under the Section 247 Hawaiian Home Lands program submitted for assignment to HUD.

What to review: Review the mandatory processes for electronic submission of form HUD-27011 and prior HUD approval of title evidence packages and servicing records for Section 247 Hawaiian Home Lands assignments effective no later than January 31, 2025. AWACS interpretation