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ML 2009-17: Accuracy of Lender Date for FHA-Approved Mortgagees (5/22/09) |
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ML 2009-17: Accuracy of Lender Date for FHA-Approved Mortgagees (5/22/09) |
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TO: ALL APPROVED MORTGAGEES
Chapter 6 of HUD Handbook 4060.1 REV-2 requires all approved mortgagees to keep the Department apprised of relevant business changes for their institution. It is incumbent upon approved mortgagees to verify the accuracy of their institution’s information regularly and make changes as necessary in order to comply with these requirements. Impending changes to the process for renewal of FHA lender approval will highlight inconsistencies in lender business and officer data, making it even more important for lenders to confirm that the information regarding their institution is complete and correct.
Changes to the FHA Lender Renewal Process and the Need for Accurate Lender Data
HUD will be instituting changes in the coming months to its annual renewal process for FHA approved lenders. Specifically, in an effort to strengthen its controls, the Department will eliminate the paper version of the Yearly Verification Report (V-Form) required for all renewing FHA-approved lenders and replace it with an automated Annual Certification process completed in the FHA Connection. Only corporate officers and principal owners with authority to legally bind the corporation or entity will be permitted to complete the Annual Certification on behalf of an institution. Individuals not currently listed as an authorized corporate officer or principal owner in the Department’s records will not be permitted to complete the Annual Certification for a renewing mortgagee.
In order to prepare for these new requirements, all FHA approved lenders must confirm or update the information stored in the FHA Connection regarding their institutions so that it is accurate and complete.1 This includes ensuring that all relevant home and branch office information is correct, and, that the company’s listed corporate officers are current. Your FHA Connection Coordinator has the authority to verify the accuracy of the information for your institution in the FHA Connection, and to make any changes.
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Paperwork reduction information collection requirements contained in this document have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB Control Number 2502-0005. In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB Control Number. |
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It is incumbent upon mortgagees to ensure that the appropriate information is stored in HUD’s data systems prior to recertifying their approval. HUD requires all approved lenders to review their information as soon as possible and make appropriate changes as necessary. Please refer to Chapter 6 of HUD Handbook 4060.1 REV-2 to ensure that changes are made in accordance with FHA’s requirements regarding business changes.
If you have questions regarding this Mortgagee Letter, please call the FHA Resource Center at 1-800-CALL-FHA (1-800-225-5342). Persons with hearing or speech impairments may access this number via TDD/TTY by calling 1-877-TDD-2HUD (1-877-833-2483).
Sincerely,
Brian D. Montgomery
Assistant Secretary for Housing-
Federal Housing Commissioner