Proposed FHA changes to lender approval

FHA's proposed rule changes were published in today's Federal Register regarding lender eligibility and net worth requirements.

In addition FHA published a new mortgagee letter, ML 2009-50 and announced the 2010 FHA loan limits.

There are 5 things everyone needs to know about the proposed changes to lender FHA elegibility:

1. If accepted, changes will take effect January 1, 2010
   
   
2. FHA proposes to no longer approve mortgage brokers/correspondent lenders for participation in FHA programs.
   
   
3. Sponsoring Lenders must assume responsibility for any mortgage broker/correspondent lender they do business with.
   
   
4. Sponsoring lenders assume full liability for the loans they accept from mortgage brokers/correspondent lenders.
   
5. Net worth requirements for FHA lenders will be increased from $250,000 to 2.5 million dollars.
   

You can read the entire Mortgagee Letter ML 2009-50 here: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

Most Utah loan limits remained the same, in particular Utah County loan limits remained at 323,750.

If I can help you with your financial needs feel free to call me, or visit my website at www.wfhm.com/david-doerr2 and fill out an application for a home mortgage.