The Federal Housing Administration (FHA) is seeking additional comments from lenders on doing business with the agency.
The FHA extended the deadline for public comment regarding two draft sections of its mortgage policy handbook to Aug. 15.
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.
The original deadline for stakeholders to provide voluntary feedback on the two draft sections was July 29.
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.
“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 Cassandra Dowell