July 01, 2014

FHA seeks feedback on lending handbook sections

July 2, 2014 – The Federal Housing Administration has posted two new lender guidance handbook sections for feedback as part of the administration's effort to make it easier for lenders to comply with its single-family requirements.

"FHA is committed to developing a handbook that incorporates policy that currently exists in several handbooks, rules, mortgagee letters, notices and other policy sources into a single source of policy for FHA lenders," FHA Commissioner Carol Galante said in a statement Monday. "Our intention is to make it easier to do business with us, reduce compliance costs and ultimately increase access to credit."

The handbook – which will be a single authoritative source of policy for FHA-approved lenders, according to FHA – is intended to make it easier for lenders to comply with the administration's requirements and to encourage lending to creditworthy borrowers.

The two new sections being published are "Doing Business with FHA-FHA Lenders and Mortgagees," which outlines requirements associated with FHA mortgagee approval; and "Quality Control, Oversight and Compliance," which outlines the ongoing responsibility of lenders and mortgagees and loan-level quality control.

Feedback will be accepted until July 29.