When should lenders apply the Back to Work underwriting guidance?

Lenders must use the Back to Work – Extenuating Circumstances guidance when manually underwriting a purchase money mortgage application from a borrower who has experienced an economic event resulting in a foreclosure, short sale/pre-foreclosure sale, bankruptcy, or other negative impact on credit.

The Back to Work guidance is effective for purchase applications with case numbers assigned on or after August 15, 2013 through September 30, 2016.

For additional information see Handbook 4000.1 II.A.5.d.xi.(B) available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh