The Mortgage Bankers Association and the Housing Policy Council have called for specific changes to the proposed updates to FHA’s defect taxonomy for servicing loan reviews.

The VA has introduced a new program participation management system for its loan guaranty program.

The changes are effective Sept. 28 and are necessary to improve the long-term stability of the HECM program, FHA said.

The Department of Housing and Urban Development updates code on manufactured home construction and safety standards; HUD issues final rule modernizing housing counseling services delivery; HUD’s Office of Housing Counseling hosts virtual conference.

The updates to the handbook outline guidance for servicing non-performing loans under a new rule, which will be implemented in February.

The trade group urged the Department of Housing and Urban Development to roll back the minimum debt service coverage ratio and raise the maximum loan-to-cost ratios for FHA’s multifamily loan program.

Under current rules, borrowers must apply for a 203(h) mortgage within one year of the President’s declaration of the disaster.

VA wants servicers to immediately stop offering previously outlined loss-mitigation options from Chapter 5 of its servicers’ handbook.

The case revolved around a property in Brooklyn, NY, with a reverse mortgage dating back to February 2007 and whose owner died in February 2013. The borrower’s estate challenged the foreclosure, arguing that it was past the statute of limitations.

Mortgage servicers will be able to offer the mortgage recovery advance option as a standalone feature or as part of a 30- or 40-year loan modification, the Rural Housing Service said.