|The U.S. Department of Housing and Urban development is making changes to the annual renewal process for lenders approved to make loans insured by the Federal Housing Administration.
The changes will be instituted in the "coming months," according to Mortgagee Letter 2009-17 issued Friday.
"In an effort to strengthen its controls, the department will eliminate the paper version of the yearly verification report (V-Form) required for all renewing FHA-approved lenders and replace it with an automated annual certification process completed in the FHA Connection," the letter said.
The certification must be completed by corporate officers and principal owners with executive power.
HUD warned mortgagees that the impending changes will highlight inconsistencies between lender business and officer data. All FHA-approved lenders need to confirm or update data recorded in the FHA Connection.
"It is incumbent upon mortgagees to ensure that the appropriate information is stored in HUD's data systems prior to re-certifying their approval," HUD said. "Please refer to Chapter 6 of HUD Handbook 4060.1 REV-2 to ensure that changes are made in accordance with FHA's requirements."