WASHINGTON – As part of a broader effort to develop a handbook which will be a single, authoritative source of policy for FHA-approved lenders, the Federal Housing Administration (FHA) today posted two new handbook sections on The Drafting Table for feedback. The Handbook is part of FHA’s “Blueprint for Access,” which is intended to make easier for FHA lenders to comply with Single-Family requirements and encourage lending to creditworthy borrowers across the credit spectrum.
FHA Commissioner Carol Galante said, “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. Our intention is to make it easier to do business with us, reduce compliance costs and ultimately increase access to credit. We look forward to receiving feedback from our partners so we can continue improving the way we work together.”
FHA is publishing two new sections of its developing Single-family Handbook:
Doing Business with FHA - FHA Lenders and Mortgagees– This section outlines the requirements associated with FHA mortgagee approval, including eligibility requirements, application processes, operating requirements, post-approval changes, the recertification process, and processes for applying for supplemental mortgagee authorities.
Quality Control, Oversight and Compliance– This section outlines the ongoing lender and mortgagee responsibility to perform institution and loan-level quality control. Additionally, this section details the repercussions for failing to act in accordance with FHA requirements, including explanations of possible administrative actions and sanctions. It is intended that this clear guidance will assist lenders to better meet FHA standards and reduce compliance costs in the process.
FHA invites all interested parties to review these two new and to provide feedback through July 29, 2014.