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Financial Services Law Insights and Observations

FHA clarifies eligibility of nonpermanent residents

Federal Issues FHA Mortgages DACA

Federal Issues

On May 28, FHA announced the publication of Mortgagee Letter (ML) 2021-12, which clarifies the eligibility of FHA-insured financing for Deferred Action for Childhood Arrivals (DACA) recipients and amends employment documentation requirements for citizens of the Freely Associated States and individuals with H-1B status. ML 2021-12 also updates requirements for certain non-permanent residents seeking to obtain insured mortgage financing under FHA’s Single Family Title I and Title II forward mortgage insurance programs. FHA notes that while the guidance may be implemented immediately, it must be implemented for mortgages with case numbers assigned on or after July 26, 2021.