twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.



FHA Mortgagees Face Stiffer Eligibility Requirements

Mortgagee Letter 2009-31 issued

Sept. 18, 2009

By MortgageDaily.com staff


Mortgagees approved to originate and close loans that are insured by the Federal Housing Administration face stiffer net worth requirements under changes planned by the U.S. Department of Housing and Urban Development. But mortgage brokers fared well under the changes -- with liability on loans they originate being shifted to approved mortgagees.

Among the announced changes was a requirement that supervised mortgagees annually submit audited financial statements to ensure they are adequately capitalized. HUD noted that the majority of mortgagees are already required to submit audited financials to regulators, investors and Fannie Mae and Freddie Mac.

The change, which is effective on Jan. 1, 2010, is the result of the enactment of the Helping Families Save Their Homes Act of 2009, according to HUD Mortgagee Letter 2009-31.

FHA plans to propose raising the net worth requirement for mortgagees to $1 million from $250,000 -- where it has stood since 1993. The increase, which could occur again, becomes effective within one year of the proposed rule's enactment.

The Mortgage Bankers Association weighed in on the net worth requirement.

"For several years, MBA has been advocating for higher net worth requirements for FHA lenders," MBA Chairman David G. Kittle said in a statement. "It is important that lenders and brokers be made to have sufficient financial backing so they can be held accountable in the event of problem loans."

FHA originators and lenders are required to meet the eligibility criteria for a supervised or non-supervised mortgagee and assume liability for their loans. While loan correspondents, also known as mortgage brokers, can continue to originate FHA-insured loans through relationships with approved mortgagees, they will no longer receive independent FHA approval for origination eligibility -- placing the burden of liability on the approved mortgagee.

"As the FHA's stable of lenders grows, these lenders must have 'skin in the game,'" HUD said. "These credit changes will do that by ensuring they have long-term interest in the performance of the loans they originate."

The move is also expected to boost the number of eligible FHA mortgage brokers while providing for more effective oversight through the approved mortgagee.

The mortgagee letter noted that lenders are ineligible for FHA approval if any of their principals, executives or production employees has been indicted or convicted of an offense tied to real estate or mortgage lending. Eligible lenders can't have any unresolved issues with HUD and must conform to generally accepted practices of "prudent" mortgagees.

Mortgagees that don't meet the new requirements will not receive a renewal, and applications already submitted by unqualified new applicants will be returned.

In an apparent response to the fiasco with Taylor, Bean and Whitaker Mortgage Corp., HUD said mortgagees must notify FHA when they lender are subject to any sanction or any other administrative action.

next story

back to current headlines

Mortgage Broker News | Originator Newsletter
Stories about mortgage brokering and broker programs. Profiles of successful mortgage brokers. Articles about mortgage brokers who excel at other activities. Broker lawsuits and criminal broker activity.



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders