Update on CalHFA and HUD's
Mortgagee Letter 19-06 (ML 19-06)

It is business as usual for CalHFA’s FHA loan programs. The effective date of HUD’s ML 19-06 has been temporarily suspended again by the U.S. District Court in Utah with no future effective date announced.

In anticipation of a possible ML 19-06 future effective date, CalHFA has updated its pre-closing program documents. Samples can be previewed here . These documents are issued simultaneously with the subordinate loan Notice of Commitment that is junior to an FHA-insured loan when used for down payment assistance. 

Note: The Zero Interest Program (ZIP) subordinate loan does not require this letter as ZIP loan funds can only be used for closing costs.

Also, at the time of post-closing purchase of the CalHFA subordinate loan used for down payment, CalHFA will supply a Purchase Advice Notice to both the lender and to CalHFA’s servicer as documentation of the satisfaction of the obligation or liability by the Governmental Entity (CalHFA) after submission of the mortgage to HUD for FHA insurance.

Thank you for your continued partnership with CalHFA.