We have received numerous emails and phone calls concerning the status of the proposed rule.  Here is what we know.  The comment period ended on December 31, 2009.  HUD is currently responding to the comments that were issued and is in the process of preparing a final rule.  We have no information as to when or if a final rule will be issued.
 
Last week, HUD send out an email to all approved FHA lenders.  Their email states that FHA has not implemented any policy changes relating to the submission of annual Audited Financial Statements.  Therefore, all FHA approved lenders must comply with FHA requirements to submit 'acceptable' annual Audited Financial Statements within 90 days of their fiscal year end.

In our opinion, HUD has not altered its proposed position on eliminating the audit requirement for loan correspondents.  However, they are telling lenders that the current rules are still in place until a final rule is published and effective.  The timing for publishing a new rule may extend beyond the current deadline or may not be issued at all.  Therefore, lenders are being encouraged to proceed under the current rules until further notice.

Extensions for submitting Audited Financial Statements are only granted in cases of catastrophic events beyond the control of the lender or auditor.  Extensions must be requested no earlier than 45 days prior to the submission due date and no later than 15 days prior the the submission due date.
 
V-form must be submitted electronically - effective 9/1/2009.  Only corporate officers and principal owners are permitted to sign or complete the form.
 
Submission of Audited Financial Statements for all FHA lenders is still required.

To view the entire copy of the email from HUD click here.