Some Federal Housing Administration mortgagees will have more time to file their annual recertifications because a key system won’t be ready on time.
FHA-approved lenders and mortgages have 90 days after their fiscal year end to complete the recertification process.
The recertification requirements are outlined in Title 24, Code of Federal Regulations, including Uniform Financial Reporting Standards, Approval of Lending Institutions and Mortgagees-General Approval Standards, and Approval of Lending Institutions and Mortgagees-Supervised Lenders and Mortgagees.
Lenders and mortgagees with fiscal year ends on Dec. 31, 2013, or later will be required to use the Lender Electronic Assessment Portal — which consolidates all FHA lender approval and recertification business processes and replaces the Lender Assessment Subsystem — for the recertification process.
However, LEAP recertification functionality will not be deployed until after March 31, 2014, according to Mortgagee Letter 2013-42 from the Department of Housing and Urban Development.
Since lenders with fiscal years that end on Dec. 31, 2013, won’t have access to LEAP within the required timeframe, HUD is extending the recertification deadline for all Title I and Title II lenders and mortgagees with Dec. 31 fiscal year ends until 30 days after LEAP is functional.
Federal Housing Commissioner Carol J. Galante signed a regulatory waiver for the temporary extension on Nov. 21.
“Lenders and mortgagees with a fiscal year end of Dec. 31, 2013, should be prepared to complete the recertification process, including the submission of financial information and fee payments, not later than May 31, 2014,” the mortgagee letter stated.
