MBA: Proposed FHA Indemnification Rules Penalize Responsible Lenders

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On Monday the Mortgage Bankers Association (MBA) sent a letter to the Federal Housing Administration (FHA) administrator laying out the association's objections to and in some cases agreement with new rules recently proposed for the FHA Lender Indemnification (LI) Process. These lenders are able to endorse FHA mortgage loans without a pre-endorsement review by FHA. The rules were announced on October 8 by FHA Commissioner David Stevens who said at the time, "It's important that our expectations are crystal clear. We need to clarify which circumstances we'll require indemnification and the level of loan performance we expect lenders to maintain." READ THE FULL STORY The letter, signed by John A. Courson, president and chief executive officer of MBA and directed to David Stevens, said the MBA...(read more)

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Source: www.mortgagenewsdaily.com