The US Department of Housing and Urban Development sent out a notice stating that the Federal Housing Administration (FHA) is extending the deadline for the submission of audited financial statements for loan correspondents seeking renewal of their FHA lender approval for 2010.
According to the statement, HUD is seeking to eliminate FHA approval for loan correspondents through a proposed rule issued on November 30, 2009. Because this rulemaking is still in process and a final rule has not yet been issued, FHA is extending the deadline for the submission of audited financials.
For loan correspondents with a fiscal year end of December 31, and that would ordinarily be required to renew their FHA approval by March 31, 2010, HUD is providing these lenders with an additional 30 days in which to submit their audited financial statements.
These loan correspondents must continue to comply with existing requirements for the submission of their Annual Certifications and renewal fees, but will be given until April 30, 2010, to submit audited financial statements.
HUD stressed in the notice that the deadline for the submission of the Annual Certification and renewal fee has not been changed. Loan correspondents that do not complete their renewal in accordance with the deadlines as specified above will no longer be FHA-approved as of the effective date of the final rule that follows the November 30, 2009, proposed rule.
During the National Reverse Mortgage Lenders Association Road Show in Atlanta, Daniel Rogers, Director, Atlanta Home Ownership Center of HUD told attendees the department received over 8,000 comments in response to the proposed rule. He stressed that HUD is analyzing all of the comments and expects the final rule to be published in March.