Policy Changes Should Make Lenders Less Scared of FHA

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Posted To: MND NewsWire

The FHA has released new loan-level and annual lender-level certifications which it said it expects will provide better clarity to lenders about FHA policies, including those that are designed to protect borrowers and ensure quality lending practices. Lenders who violate certification rules can be forced to buy back loans sold and pay monetary damages. Edward L. Golding, Principal Deputy Assistant Secretary for the Department of Housing and Urban Development (HUD) and FHA Commissioner, said in a letter to lenders that FHA wanted to make clear that they will be held accountable by the agency for only those mistakes that would have altered the decision of a loan’s approval when those loans are backed with FHA guarantees. Golding’s letter said the new certifications were produced because of comments…(read more)

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