A couple of days ago, I wrote about some unintended consequences of the increase in government regulation on mortgage lenders. Recently, more and more banks are quickly moving away from FHA lending because of what they believe to be increased risk. Increased risk from the type of borrower involved, from the new Dodd-Frank rules and from FHA certification requirements. JPMorgan…
If you have been reading our LoanLogics Blogs and Newsletters as well as other industry publications, you are aware of the fact that the policies outlined in FHA’s 4000.1 Handbook (for the most part) became effective on September 14, 2015. This 800+ page Handbook will provide a single reference point for FHA underwriting, Quality Control & appraisal policies. More importantly,…
Are you aware of what you are certifying to on an FHA loan transaction? Are you aware of the False Claims Act? Read on! The False Claims Act is the federal government’s primary tool in combating fraud against the government. With respect to some recent cases involving mortgage lenders, the Department of Justice (DOJ) has asserted that certain lenders falsely…
HUD/FHA published revisions to its draft 4000.1 Handbook on August 14, 2015 that should benefit lenders! If you have been reading the Blog Posts and Newsletters being generated by LoanLogics in the past few months – you are aware of the many underwriting policy changes being implemented by HUD/FHA when their 4000.1 Handbook becomes effective. Most portions of this Handbook…
To FHA Approved Lenders: are you hiring or terminating staff Underwriters? To DE Underwriters: are you thinking about changing jobs? What you both need to know! In my prior Blog Post, I discussed the current process by which prospective “Direct Endorsement” (DE) Underwriters obtain their FHA approval & DE number. Once someone has obtained this designation, it is important for…
At some point in your career − maybe even during a job interview − many in the mortgage lending industry have been asked: Are you a DE underwriter? Do you have a CHUMS number? What is your DE number? Essentially, these are all variations of the same question. In 1996, HUD/FHA delegated the responsibility of approving underwriters to process loans…
