FHA Proposes New Rules:                                     Loan Correspondents and DE Mortgagees WEBSITE QUICK LINKS HOME Mortgage Compliance Service Presentations CORE Compliance About Us Our Clientele News & Views Posts Archive Library Contact Us Website Visit Us! News and Views Visit Us! PRESENTATIONS Mortgage Compliance Due Diligence Forensic Services FHA Examinations Legal Reviews/Remedies CORE Compliance Matrix Loss Mitigation Quality Control HMDA / CRA Licensing Policy Guides/QC Plans IT and IS _______________ 516-442-3456 Email Us Overview On September 18, 2009, the FHA proposed specific rule making that is meant to focus on ensuring "responsible lending and risk management" for FHA-approved lenders. The intent of the changes is to assure that lenders have "long-term interest in the performance of the loans they originate." The new rule making proposals, if promulgated, will be effective on January 1, 2010.   Effective, if promulgated: January 1, 2010. Highlights Mortgagee Approval  & Loan Correspondents Loan Correspondents (mortgage brokers) will continue to be able to originate FHA-insured loans through their relationships with approved mortgagees; however, they will no longer receive independent FHA approval for origination eligibility. In effect, these policy changes will require the FHA approved mortgagee to assume responsibility and liability for the FHA insured loan underwritten and closed by the approved mortgagee. Highlights Increased Net-Worth Requirements for DE Mortgagees The current net worth requirement for mortgagees is currently at $250,000. HUD is proposing an initial increase of approximately $1,000,000 that would be in place within one year of the enactment of this rule. HUD may propose that the net worth requirements be increased further in future years to a level comparable to those required by GSEs and other market institutions. Lenders Compliance Group is a full-service, mortgage risk management firm, providing professional guidance to financial institutions in all areas of mortgage compliance. Specializations Mortgage Compliance Forensic Loan Audits FHA Examinations State and Federal Examinations Fannie/Freddie/Ginnie Applications Mortgage Due Diligence Legal Reviews & Remedies Loss Mitigation Compliance Quality Control HMDA & CRA Reviews IT & IS Compliance Statutory Licensing This communication is sent to our valued clients and colleagues, who regularly receive our Advisory Bulletins, Mortgage Compliance Updates,  Compliance Alerts, Licensing Alerts, and News and Views. These publications are free to subscribers. � 2009 Lenders Compliance Group, Inc. All Rights Reserved. Return to Top