TopCompliance ALERT Logo
                                               FHA Proposes New Rules:
                                    Loan Correspondents and DE Mortgagees



Mortgage Compliance

Service Presentations

CORE Compliance

About Us

Our Clientele

News & Views Posts



Contact Us

LCG - Link

Visit Us!
News and Views
LCG Weblog - 1
Visit Us!


Mortgage Compliance

Due Diligence

Forensic Services

FHA Examinations

Legal Reviews/Remedies

CORE Compliance Matrix

Loss Mitigation

Quality Control



Policy Guides/QC Plans

IT and IS



Email Us

Join Our Mailing List

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.

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.

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.
Action Button Image 1

Lenders Compliance Group
is a full-service, mortgage risk management firm, providing professional guidance to financial institutions in all areas of mortgage compliance.


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.