Update: HUDClips no longer has the Mortgagee Letter that has now apparently been pulled back. In anticipation, I saved a copy and link below is now to my saved copy and reference to HUDClips has been changed.
Earlier this week HUD had apparently issued a version of a mortgagee letter (2009-15) HERE that explained the ground rules for monetization of the $8,000 Federal Homebuyer Tax Credit with FHA loans.
However, based on various web posts, and a visit to both HUD and FHA websites, that mortgagee letter no longer appears, and web posts suggested it has been repealed/recalled.
I hope the recall was because there was no restriction on party with an interest in the loan from providing the monetization and restrictive language on fees was also weak.
If a party to transaction provides the monetization, the dinosaur/prudent standard of underwriting "back in the day "was that this was an inducement to purchase and could not be used as part of downpayment. With regard to letting non profits monetize the credit without signficant restriction, can anyone say "Nehemiah"?. Geez, how DID they this version of a letter get out the door!
Link above is to repost of mortgagee letter now on my web space.
Stay tuned.
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