FHA Tightens Lending Insurance Requirements to Limit Risk

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On Friday, the Federal Housing Administration (FHA) restated intentions originally announced in 2010 to enact more stringent performance requirements for Department of Housing and Urban Development-approved lenders by increasing lender indemnification, with an eye toward limiting risk and strengthening finances for its Mutual Mortgage Insurance (MMI) Fund. “These new regulations strengthen the process by which FHA requires certain lenders to indemnify the U.S. Department of Housing and Urban Development (HUD) for insurance claims paid on mortgages that are found not to meet the agency’s guidelines,” FHA said in its announcement.

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SOURCE: Published by NAMP® Publishing Group, a division of the National Association of Mortgage Processors (NAMP) (http://www.mortgageprocessor.org)