The Federal Housing Administration (FHA) announced on May 9 that it is proposing several revisions to its lender certification requirements to increase lender participation in its single-family mortgage insurance program and to provide lenders and servicers greater certainty in how to satisfy the agency’s compliance requirements.
The agency said it believes the changes will facilitate more competition in the market and result in more financing choices for borrowers, particularly entry-level home buyers.
FHA is proposing revisions to its Addendum to Uniform Residential Loan Application (Form 92900-A) and to its annual lender certification form. The changes are meant to eliminate duplicative information and present the information in a more user-friendly, easy-to-understand manner.
In addition, FHA is revising its "defect taxonomy" to clarify the various loan defect categories and how the agency weighs the severity of each defect.
"A key focus of this administration and of my tenure at HUD has been to improve the clarity, certainty and transparency of our regulations and requirements," said HUD Secretary Ben Carson. "As part of this work, we have updated our defect taxonomy as well as the annual and loan-level certifications delivered in connection with FHA-insured loans."
View the FHA announcement
For more information, contact Curtis Milton
at 800-368-5242 x8597.