The Secure and Fair Mortgage Licensing Act (SAFE Act) was enacted on July 30, 2008 as part of the Housing and Economic Recovery Act of 2008. The SAFE Act, among other things, requires states to adopt licensing and registration requirements for loan originators within certain minimum standards. If HUD determines that a state fails to establish such minimum standards consistent with the SAFE Act, HUD must then establish and implement a licensing system in that state. This proposed rule sets forth the SAFE Act’s minimum licensing requirements for loan originators and delineates the HUD procedure for determining a state’s compliance therewith and procedures for taking over the licensing system in the event of a state’s non-compliance. Comments on this proposed rule are due on February 16, 2010. [Download.]

Related to the most recent federal housing related posting, we post a link to the above-entitled HUD Housing Notice that may be of use to advocates. A primary purpose of this Notice is to provide updated guidance to owners and management agents of HUD assisted housing regarding the use of data in EIV for verifying employment and income at recertification of individuals participating in HUD rental assistance programs. [Click here to get to the HUDCLIPS page and then click on the link to H 9-20.]

This final rule, which takes effect on January 31, 2010, relates to the requirement that public housing agencies and multifamily HUD housing owners and managers use the Enterprise Income Verification (EIV) system for program applicants and participants. This rule follows the proposed rule published on October 15, 2009 on which HUD received numerous comments, including comments from housing advocates and organizations. As was required in the proposed rule, this final rule requires all applicants and program participants to submit a social security number to verify income except for any current program participants who have previously submitted a valid SSN and current participants 62 years of age or older as of January 31, 2010. New households members 6 years and older and those younger than 6 who have been issued a SSN must also submit their SSN.

Accepted forms of SSN documentation under the rule are (1) a valid social security card issued by the Social Security Administration; 2) an original document issued by federal or state government agency with the SSN and name of the applicant or participant plus other identifying information; or 3) “such other evidence of the SSN that HUD may prescribe in administrative instructions.”

The three technical changes from the October 15 propose rule are clarifications that 1) new household members under 6 years old who already have an SSN must submit the requisite info regarding the SSN; 2) that an entire household could lose its tenancy if one member fails to comply with the SSN disclosure requirements, subject to HUD exemptions provided HUD regulations; and 3) that the senior exemption applies for all future income examinations, including if the senior moves to a new HUD-assisted property. [Download.]

This joint notice relates to the implementation of Section 644 of the Housing and Community Development Act of 1992 that requires PHAs and owners to provide as part of the application for assistance a form in which applicants or tenants, at their option, may identify third parties that may be contacted to assist in the delivery of any service or special care or in resolving tenancy issues. The notice include a link to the aforementioned form. PHAs and owners were given 90 days from the date the joint notice was issued, which runs December 14, 2009, to implement this requirement. [Download. Note: This link is to the general 2009 PIH Notice page on HUDCLIPS. Once on this page, scroll down to the appropriate notice.]

This action relates to the final rule revising HUD’s public and assisted housing program regulations to require that PHAs and owners of assisted housing use HUD’s Enterprise Income Verification (EIV) system. The rule was to go into effect on September 30, 2009, after a prior delay. Now the effective date has been postponed once again to January 31, 2010. There was significant public comment on the final rule raising concerns about applicants’ and participants’ ability to obtain identifying documents required under EIV such as birth certificates and children’s social security numbers. The delay will give newly confirmed HUD officials an opportunity to review and consider these comments. [Download.]

This notice renews much of last year’s notice on the same subject, including the restrictions on approval of an extra bedroom for family caregivers and rotating caregivers. The notice includes a specific provision for seeking reasonable accommodation, a mechanism that advocates might use to seek exception such restrictions. [Download.]