FHA mortgages have been an increasing share of all loan originations for the past few years. For mortgage brokers, this has pushed them to become an FHA-approved Loan Correspondent. However, the FHA approval process has been onerous, especially the requirement that the mortgage broker pay for an audited financial statement that confirms that the broker has a net worth of at least $63,000. Accountant fees for an audited fiancial statement have run into thousands of dollars.
FHA has announced that it will not be approving mortgage brokers to act as Loan Correspondents after May 20, 2010. If your company already has an application pending with FHA, you can still get FHA approval for 2010. But what if you didn’t apply yet?
The new FHA rule provides that all non-FHA-approved Loan Correspondents (mortgage brokers) may participate in FHA programs provided they are sponsored by FHA-approved lenders. This puts the onus on FHA-approved lenders to create the requirements they will have before they accept loan applications for FHA loans from mortgage brokers. Have FHA-approved lenders created their requirements? If anyone has heard specifics about various lenders and their requirements, let me know.
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