As previously reported, on April 18, 2019 the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2019-06 setting forth new documentation requirements for down payment assistance provided by government entities to be used in connection with Federal Housing Administration (FHA) loans. The requirements were effective for case numbers assigned on or after April 18, 2019. The immediate effective date affected many transactions already in process.

On April 25, 2019 HUD issued Mortgagee Letter 2019-07, which extends the effective date of the new requirements to July 23, 2019. The new requirements will apply to case numbers issued on and after such date. HUD advised it extended the effective date to allow time for governmental entities to prepare the documentation described in Mortgagee Letter 2019-06.