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WHere can I find FHA regulations regarding rental history?

I provided 12 months of bank statements (7 months from my current account and 5 months from my old account closed in Oct 2014) to satisfy the rental payment history condition even though a Verification of Rental was already provided to our lender as well as a signed/dated LOE regarding why I closed my old account in October 2014. It was my understanding that the bank statements submitted for that condition should only be reviewed to satisfy the rental payment history however; the underwriter made a note to the file when signing off and sent it to Risk Review regarding a Year To Date amount of Overdraft Fees being on my statements from the account that was closed. In the full 12 month history provided it clearly shows on each statement that Amount of Overdraft Fees for This Period is $0.00. Any insight as to why I am being given such a hard time would be helpful. by beth.newsom810 from , Texas. Jun 10th 2015 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

Welcome to mortgage lending in the year 2015.. and you can thank your politicians for this.. Anyway.. Right now there is so much government oversight, that regulations have gotten out of control. What used to take 2 to 3 weeks is now taking 4 to 6 weeks, and every deal, regardless of how "Clean" it might be is subject to scrutiny. Underwrites are looking to be sure they comply with every guideline, and if there is any gray area at all, they will ask for a letter of explanation and get management approval so they cant get in trouble later on down the road if the loan goes into default.. I wouldn't sweat it.. As far as the guideline.. Try an internet search for 4155.1 4.C.1.e But understand that FHA 's guideline is very vague.. and every lender can have their own way of analyzing, interpreting, and approving each guideline.. plus the lender can put additional guidelines in place called "Overlays".. so this really has nothing to do with FHA, but your lenders overlays that's causing you problems.. but like I said.. i wouldnt sweat it.. if everything checks out, you should be fine. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jun 10th 2015
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Ron Pippin (RonPippin)
#26 ranked lender in Utah - 158 contributions

If you want to read the guidelines they are listed here but as William stated you'll likely get through it.http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4155.1

Jun 10th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,930 contributions

It is not uncommon to need a certain document for one thing, and then it to open a can of worms on another thing - especially in the post crash mortgage world. Some underwriters are big fat chickens on everything, where others are more realistic. You will need to talk to your Loan Officer to talk to Underwriting... If there are no overdrafts, what is the worry?? Next, overdrafts in and of themselves are not a condition for denial, but rather something to consider into the big picture. As you say you have no overdrafts, this shouldn't apply to you, but this is especially true if the house payment is going to be more them rent. If someone is bouncing checks now... and payments are going up??? How would YOU feel as a lender considering giving a big loan when there is clear financial mismanagement (bounced checks)

Jun 11th 2015
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Thanks for all the feedback. Sounds like the deal will not be going through based on a text message from our broker. The Overdraft Fee apparently occurred prior to April 2014 and the lender is not willing to sign off for us to close. We are now losing the property as well as our $14,000 we put into the property which consisted of charged penalities from the builder because of closing being delayed twice by the lender and the $7300 which was our earnest money and payment for upgrades during our build. Extremely frustrating. Our broker was not the most organized and I definitely have learned a lot of lessons from this process. There were several times during this whole process that I was doing more handling of my file then the actual broker. There lacked follow through and organization. Time to regroup at this point and cut our losses however; explaining this to our four children is the hardest as they were extremely excited.

Jun 11th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,930 contributions

Based on overdraft only??? Find a new lender... But this is a great example of why it is so important to choose a great Loan Officer. I always say 10% of your loan success is the company you choose, 90% is the Loan Officer you choose.

Jun 11th 2015
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Yes sir! It is based on the Overdraft only because of the note that the UW put on our file after she signed off. We initially were referred to this loan officer for credit restoration however; after initially looking at our credit he said that he could make it happen. We signed on the contract for our build on 02/22/2015. The house has been ready since 05/22/2015. It's been honestly an absolute nightmare. We could try for a new lender but the builder will no longer give us time on the property and honestly we can't continue to pay $500.00 a day in penalty fees. So at this point we honestly are willing to just walk away and accept the losses and just regroup. See if our landlord will let us rent for an additional year and try again next year.

Jun 11th 2015
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