MBA Commends HUD for Reproposed Draft of FHA Annual Lender Certification

HUD this week published in the Federal Register a set of revisions it originally proposed in May for FHA annual letter certifications, a move that drew praise from the Mortgage Bankers Association.

In May, FHA proposed changes to its annual lender certification, designed to better align with statute and regulation without undermining its ability to hold lenders accountable for compliance with FHA approval and continuing eligibility requirements under the False Claims Act. After assessing the feedback received, FHA made additional changes to streamline the annual lender certification.

On August 14, FHA published the Federal Register notice (https://www.federalregister.gov/documents/2019/08/14/2019-17453/30-day-notice-of-proposed-information-collection-fha-lender-approval-annual-renewal-periodic-updates), requesting public comments on the proposed changes.

MBA President and CEO Bob Broeksmit, CMB, issued a statement yesterday commending the reproposed draft.

“MBA commends HUD for proposing these revisions to the annual lender certification and providing the opportunity for further stakeholder input,” Broeksmit said. “This is a vitally important step in HUD’s efforts to create an environment in which lenders can operate with clarity and certainty regarding both FHA’s requirements and potential penalties for noncompliance. We look forward to working with HUD on additional efforts to ensure a robust and safe FHA for borrowers, lenders, and taxpayers. These initiatives are critical to restoring more active participation in the FHA program from all types of lenders in order to serve first-time and low-to-moderate-income homebuyers.”