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USDA/RHS | RIN: 0575-AD47 | Publication ID: Fall 2024 |
Title: ●7 CFR Part 3555 – SFHGLP; Principal, Interest, Taxes, and Insurance (PITI) Ratio and Interested Party Concession Updates. | |
Abstract:
The Agency is proposing changes to the SFH Guaranteed regulations at 7 CFR 3555 by updating the maximum principal, interest, taxes, and insurance (PITI) ratio for all non-Guaranteed Underwriting System (GUS) Accept files; eliminating the availability of a PITI ratio wavier for some files; and providing clarification on interested party concessions to adjust to the current mortgage environment and industry standards. The proposed rule is intended to apply only to lenders. All lenders are required to follow underwriting guidance when underwriting any mortgage loan product and this action is completed in a lenders’ normal course of business. This requirement is consistent with standard mortgage industry practices and is required regardless of the size of the entity. The proposed rule is not expected to result in any increase in costs or prices to small entities. It is expected that the proposed changes would benefit the public with increased buying power” (i.e., buy a bigger home, more money available for closing) with a higher PITI ratio. The ability to exclude real estate commission fees from the seller concession limitation allows the buyer more flexibility in negotiating with the seller to pay closing costs and prepaids. Stakeholders will be able to assist more applicants by providing more options in financing with more flexible ratios and concession calculations. Discussions have taken place at the SFHGLP’s monthly joint housing calls with FHA, FHFA, CFPB, VA, and Ginnie Mae where we provide updates on the status of our proposals and seek input from our partners. In our tri - annual calls, stakeholders have expressed concerns regarding our PITI ratio , stating it does not coincide with typical industry standards . An additional opportunity will be provided for input during the comment period once the proposed rule is published. |
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Agency: Department of Agriculture(USDA) | Priority: Substantive, Nonsignificant |
RIN Status: First time published in the Unified Agenda | Agenda Stage of Rulemaking: Proposed Rule Stage |
Major: No | Unfunded Mandates: No |
CFR Citation: 7 CFR 3555 | |
Legal Authority: 42 U.S.C. 1480(k) |
Legal Deadline:
None |
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Timetable:
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Regulatory Flexibility Analysis Required: No | Government Levels Affected: None |
Small Entities Affected: No | Federalism: No |
Included in the Regulatory Plan: No | |
RIN Data Printed in the FR: No | |
Agency Contact: Laurie Mohr Finance & Loan Analyst Department of Agriculture Rural Housing Service 1400 Independence Avenue SW, Washington, DC 20250 Phone:314 679-6917 Email: aurie.mohr@usda.gov |