Stevens' Statement Regarding FHA’s Loan Certification Requirements
|Rob Van Raaphorst|
|(202) 557- 2799|
WASHINGTON, D.C. (September 1, 2015) - David H. Stevens, President & CEO of the Mortgage Bankers Association, released the following statement regarding FHA's Loan Certification Requirements.
"MBA appreciates FHA's efforts to provide the industry the opportunity to comment on the revised certifications. As the entry point for homeownership for so many first time homebuyers but also borrowers who often have higher risk, clarity and confidence for lenders are critical concerns.
"The language in the certification, however, lacks clarity as to the insurability of a loan and doesn't embody a reasonable diligence standard for FHA underwriters, address the significance of any errors in terms of risk to the FHA, or allow for an opportunity for lenders to correct any mistakes, regardless of how minor they may be. This lack of clarity continues to leave the door open to possible enforcement actions, and also encourages federal agencies, other than FHA, to take action against lenders. Absent clarity, some lenders may continue to re-evaluate which borrowers they are willing to extend FHA backed lending to and at what prices.
"MBA looks forward to providing further comment and will continue to work with various stakeholders, including FHA, to foster a lending environment which protects consumers and encourages lenders to lend to responsible, qualified borrowers."