In its continued attempt to develop a comprehensive forward mortgage policy handbook, the Federal Housing Administration has posted two new draft sections for stakeholder review and feedback.
FHA’s “Single Family Housing Policy Handbook,” which the agency began developing last year, is an effort to consolidate all FHA Single Family policies and requirements into one authoritative source.
The new sections — “Doing Business with FHA – FHA Lenders and Mortgagees” and “Quality Control, Oversight and Compliance” — address lender approval and performance, outlining specific requirements for each.
“FHA makes clear which activities are necessary to become an FHA-approved lender or mortgagee on the front end of the mortgage process versus those that are required to comply with FHA’s quality control standards and compliance requirements on the back end,” both sections state.
The first, “Doing Business with FHA,” includes eligibility requirements, application processes, operating requirements, post-approval changes, the recertification process and processes for applying for supplemental mortgagee authorities.
The second outlines the lender responsibility to perform quality control and details the repercussions for failing to act in accordance with FHA requirements, including explanations of possible sanctions.
Written by Emily Study