The Federal Housing Administration (FHA) has released a final rule streamlining financial statement reporting requirements for small federally supervised lenders and mortgagees with under $500 million in assets.
Regulations currently require all supervised lenders and mortgagees to submit annual audited financial statements as a condition of FHA lender approval and re-certification, but the new rule now requires lenders in this category to submit their unaudited financial regulatory reports, aligned with their fiscal year-ends, to their supervising federal banking agencies.
Small supervised lenders and mortgagees would only be required to submit audited financial statements if the Depart of Housing and Urban Development determines they pose “heightened risk” to the FHA’s insurance fund.
However, the streamlined reporting requirements don’t impact FHA’s annual audited financial statements submission requirements for non-supervised and large supervised lenders and mortgagees, the agency clarifies.
The rule is effective October 17, 2013.
Written by Alyssa Gerace