Post date: Dec 07, 2013 1:51:15 AM

                                                                                                                                                                                  December 6, 2013 

Basicly, in short: 

The $729,750 limit on FHA loans will be reduced down to the $625,500 limit as of 1/1/2014. J

nEWS AND UPDATES

New FHA Connection log-in/log-out requirements effective November 30, 2013 require passwords to be 8 characters in length and include at least one uppercase letter, one number, and one special character (e.g., @, $, &).  User accounts will be locked after three failed login attempts, but will automatically unlock after 30 minutes.  Additionally, FHA Connection will automatically time out after 20 minutes of inactivity, requiring the user to log in again.  Also new is the sign off button in the menu bar giving users the option to manually sign off FHA Connection.

Federal Housing Administration (FHA) Announces New 2014 Loan Limits

FHA’s Office of Single Family Housing published Mortgagee Letter 2013-43 today, which announces that on January 1, 2014, FHA will implement new Single Family loan limits for Title II Forward Mortgages as detailed in the Housing and Economic Recovery Act of 2008 (HERA).  As a result, the calculation of FHA’s maximum loan limits in high cost metropolitan areas of the country will be reduced and the  current high “ceiling” of $729,750 will be reduced to $625,500.  

The revisions will be effective for all FHA case numbers assigned on or after January 1, 2014 through December 31, 2014. We strongly urge Mortgagees to review today’s Mortgagee Letter to understand the full scope of these changes, and to begin planning for implementation. Mortgagees may review Mortgagee Letter 2013-43 at www.hud.gov/lenders under “What’s New.”

To enable Mortgagees to easily identify areas with loan limit reductions and increases resulting from the new limit calculations, FHA has published separate lists of counties with loan limit increases and loan limit decreases.  Mortgagees may also view these lists at www.hud.gov/lenders under “What’s New.” Complete details regarding this posting can be found in the attached “2014 FHA Loan Limits” document.  Please click the document link to access this information.

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