A handbook that promises to be a single, authoritative source for lenders that make mortgages insured by the Federal Housing Administration is in the works.
As part of FHA’s “Blueprint for Access,” the new handbook is intended to make it easier for FHA mortgagees to do business with the agency.
With the help of the new handbook, lenders should be better able to comply with single-family requirements while keeping the credit spigot open for qualified borrowers.
The Department of Housing and Urban Development discussed the handbook in HUD bulletin No. 14-087.
“FHA is committed to developing a handbook that incorporates policy that currently exists in several handbooks, rules, mortgagee letters, notices and other policy sources into a single source of policy for FHA lenders,” Federal Housing Commissioner Carol Galante said in the notice. “Our intention is to make it easier to do business with us, reduce compliance costs and ultimately increase access to credit.”
FHA seeks feedback on two new sections of the handbook.
The first section, Doing Business with FHA – FHA Lenders and Mortgagees, outlines eligibility and approval requirements for FHA mortgagees. It covers the application process, operating requirements and post-approval changes. Also reviewed are the recertification process and processes for applying for supplemental mortgagee authorities.
Information about the first section and providing feedback is at hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/SFH_policy_drafts/lenders_mortgagees.
The second section, Quality Control, Oversight and Compliance, outlines ongoing lender and mortgagee responsibility to perform institution and loan-level quality control. It also provides details about what could happen if mortgagees fail to follow FHA guidelines. Such repercussions include potential administrative actions and sanctions.
Information about the second section, as well as details about how to provide feedback, are online at .
Feedback for both sections is being accepted until July 29.
