It’s Out!

Written By: Glenn Michaels, Op-Ed Writer

The new underwriting bible for FHA has now come out. It has been a long time in the making.
The new underwriting bible is dated September 30, 2014 and effective June 15, 2015.

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The new underwriting bible is called “Single Family Housing (SFH) Policy Handbook, HUD – 4000.1. After spending several hours reading the SFH, I must state that HUD did a fantastic job incorporating all of the existing Mortgagee Letters (ML) and updated the existing Handbooks HUD -4155.1 and HUD – 4155.2.

The SFH was written in my opinion in plain language and almost anyone can follow what was written. In addition this is an automated handbook and in using the handbook there are forms and appendixes highlighted in blue as you work your way through the new handbook.

Keep in mind that the last underwriting bible was written and in the year 2002, or twelve (12) years ago. In twelve (12) years there have numerous ML’s written and with all of them incorporated into the SFH it should be easier for everyone to learn and follow the United States Housing and Urban Development’s (HUD) guidelines when originating, processing, underwriting, closing, insuring and post-closing of FHA insured mortgage loans.

Are there changes beyond HUD – 4155.1, HUD – 4155.2 and ML’s? There are but nothing drastic. Every month while teaching new underwriters they are told to read and check certain Mortgagee Letters (ML) because those were very important changes to underwriting. The original guidelines were altered due to a Mortgagee Letter.

Now all current and future Direct Endorsed (DE) mortgage underwriters need to review the SFH Policy Handbook HUD – 4000.1 and any ML that have been generated since September 30, 2014.

There still may be references to older ML’s but this should be limited.

The new SFH also contains a Glossary and an area about all of the acronyms that HUD is famous for. This was a valiant attempt simplify working with HUD’s FHA program.

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Although the SFH is not effective until June 15, 2015 I would strongly suggest that everyone put on their desk top for reference.

About The Author

Glenn Michaels - As an op-ed writer, Glenn Michaels is a mortgage underwriting instructor for CampusUnderwriter ( As a BBA & FHA DE Underwriter, Glenn is a Pace University graduate who also graduated from New York University’s School of Mortgage Finance. Glenn has conducted numerous training classes and has worked in the mortgage banking industry for 38 years. 

Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.