FHA proposes changes to URLA, lending certifications
The Federal Housing Administration (FHA) released a proposed rule last week that would change its lender certification requirements. Under the proposed changes, requirements would be more transparent, making it easier for depository institutions to offer these types of loans.
FHA loans, although not commonly used by credit unions, are a good option for many first-time homebuyers and an important part of the mortgage market.
"FHA’s goal is to produce forms that are concise, while appropriately reflecting FHA’s statutory and regulatory program requirements in a way that is easily understood by all parties. The proposed changes streamline the certification statements while continuing to hold lenders accountable for compliance with all HUD eligibility and approval requirements," the agency stated.
Proposed revisions to the Addendum to Uniform Residential Loan Application would reorganize Form 92900-A, regarding loan-level certification, into a more understandable format. Eliminating duplicative information that is listed elsewhere on the form. Existing and proposed language can be viewed side-by-side here. The administration is also proposing changes to its annual lender certifications to better align them with National Housing Act standards.
The FHA is inviting stakeholders to provide feedback on the proposed changes. Comments are due to the administration no later than June 8. The proposed changes and additional resources are available here.
NAFCU is leading efforts to ensure credit unions' unfettered access to the secondary mortgage market in any housing finance reform and has urged the Trump administration and Congress to work together on a comprehensive solution. Association staff has met with FHFA Director Dr. Mark Calabria several times to share NAFCU's housing finance reform priorities, and Executive Vice President of Government Affairs and General Counsel Carrie Hunt recently testified before the Senate Banking Committee on credit unions' priorities for housing finance reform.
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