Print Page | Contact Us | Sign In | Register
News & Press: Resources

Trade Groups Weigh In on Proposed Changes to Lender Certification Requirements

Tuesday, June 11, 2019   (0 Comments)
Posted by: Amanda Averch
Share |

ABA joined three other financial and housing trade organizations last week in a comment letter to the Federal Housing Administration offering feedback on proposed changes to its single-family loan and lender-level certifications. FHA proposed the changes last month in an effort to encourage greater bank participation in the program.


The groups pointed out that the current framework requires lenders to attest to their absolute compliance without any qualifiers, holding lenders “to an impossible-to-meet standard of strict adherence to all program requirements” and ultimately dissuading many from participating in the program due to liability concerns.


In the letter, the groups called on FHFA to either rescind the annual certification requirement or replace the current annual certifications with “a certification that reinforces the obligation of each mortgagee to establish and operate in accordance with a corporate risk management plan.” They added that such an approach “would more meaningfully foster compliance by each mortgagee with FHA requirements.” Read the comment letter

Contact Us

Colorado Bankers Association
One Sherman Place
140 East 19th Avenue, Suite 400
Tel: 303.825.1575
Fax: 303.825.1585

Connect With Us