Loading...FHA Mortgage Companies Face Stricter Eligibility Requirements
ByIn a recent report, HUD announced stricter net worth requirements for approved FHA mortgage lenders who are authorized to originate and close loans that are insured by the Federal Housing Administration. There are new changes planned by the U.S. Department of Housing and Urban Development, but mortgage brokers maintained eligibility under the changes with liability on FHA loans they originate being shifted to approved FHA mortgagees. This will apply to FHA mortgage companies offering FHA streamline, cash out, purchase and 203k loans.
Among the announced changes was a requirement that supervised mortgagees annually submit audited financial statements to ensure they are adequately capitalized. HUD noted that the majority of FHA mortgage companies are already required to submit audited financials to regulators, investors and Fannie Mae and Freddie Mac.
