On Jul. 18, HUD proposed revised FHA approval requirements.
HUD proposes to revise requirements for investing lenders and investing mortgagees to gain or maintain status as Federal Housing Administration (FHA) approved.
Proposal Overview
Make FHA's approval requirements consistent with investing mortgagees'/lenders' risk.
Reduces barriers to FHA approval for new investing mortgagees and investing lenders.
Increases access to capital for all FHA-approved mortgagees and lenders.
Edits to ensure certification language is applicable to investing lenders/mortgagees.
Separately defining Government-sponsored enterprises (GSEs) to clarify that GSEs do not perform loan origination activities and are not subject to those FHA requirements.
Eliminate obsolete language related to lender and mortgagee net worth requirements.
Consultation
Comment due on or before Sep. 18, 2023.
Apr. 2024 HUD Fed Reg Final Rule
On Apr. 23, 2024, HUD published final rule on investing lenders, investing mortgagees.
FHA's approval requirements now consistent with investing mortgagees'/lenders' risk.
HUD also published informational notice regarding the final rule's requirements.
The final rule comes into effect on May 23, 2024.
Regulators
HUD
Entity Types
Bank; Inv Co; MG Orig
Reference
89 FR 30272, Nt INFO 2024-21, 4/23/2024; 88 FR 45863, RIN 2502-AJ60, FR-6291-P-01, 7/18/2023; Citation: 24 CFR 5.801; 24 CFR 202.5; 24 CFR 202.9; 24 CFR 202.10;
