FHA and HUD Announce Streamlined FHA Loan Certification Form
January 11, 2021
The FHA and HUD have undertaken multiple efforts to streamline aspects of the FHA loan program. The latest of these efforts includes a more user-friendly FHA loan certification form.
The HUD official site published a press release announcing it had finalized a revised “loan-level certification form” which is required as part of the FHA Single Family home loan process.
Why did HUD make these changes? According to the press release, the revised form “eliminates unnecessarily dense language while remaining consistent with pertinent statutes and other program requirements.”
HUD claims that the new changes also protect the Federal Housing Administration against fraud, which is accomplished by requiring lenders to certify the data they are required to submit is accurate.
“As outlined in HUD’s Housing Finance Reform plan, we have taken great steps to provide clarity and certainty needed for qualified lenders to continue participating in FHA’s Single Family insurance program and providing borrowers affordable homeownership opportunities.”
That’s according to the HUD Secretary, who was quoted in the press release. He also mentioned a partnership with the United States Department of Justice that is relevant to the new form.
“Today’s announcement capstones the work done by HUD, including our Memorandum of Understanding with the Department of Justice on the use of the False Claims Act, and the revisions to our Single Family defect taxonomy and the annual lender certification.”
FHA officials say the new revised loan-level certification is a step forward for both clarity and accuracy. What is the revised form?
Known as HUD Form 92900-A, Addendum to Uniform Residential Loan Application, this form is an FHA requirement and must contain signatures from the underwriter or “other lender representatives”, along with the signature of the loan applicant.
The revised HUD Form 92900-A may be used by lenders immediately. It is required for all transactions with FHA case numbers assigned on or after March 22, 2021.
These changes are considered the final round of FHA efforts designed to “reduce concerns about significant actions that could be taken against lenders for minor errors in underwriting” according to the press release.
Other modifications FHA has initiated include a revised annual certification statement requirement lenders are obligated to submit (regarding business operations and certification) and in late 2019 FHA launched a revised version of its Single Family Loan Quality Assessment Methodology designed to give lenders a “detailed assessment of how FHA views the severity of various underwriting errors in the mortgages it insures, and the appropriate remedies that lenders must take to address these errors.”
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The HUD official site published a press release announcing it had finalized a revised “loan-level certification form” which is required as part of the FHA Single Family home loan process.
Why did HUD make these changes? According to the press release, the revised form “eliminates unnecessarily dense language while remaining consistent with pertinent statutes and other program requirements.”
HUD claims that the new changes also protect the Federal Housing Administration against fraud, which is accomplished by requiring lenders to certify the data they are required to submit is accurate.
“As outlined in HUD’s Housing Finance Reform plan, we have taken great steps to provide clarity and certainty needed for qualified lenders to continue participating in FHA’s Single Family insurance program and providing borrowers affordable homeownership opportunities.”
That’s according to the HUD Secretary, who was quoted in the press release. He also mentioned a partnership with the United States Department of Justice that is relevant to the new form.
“Today’s announcement capstones the work done by HUD, including our Memorandum of Understanding with the Department of Justice on the use of the False Claims Act, and the revisions to our Single Family defect taxonomy and the annual lender certification.”
FHA officials say the new revised loan-level certification is a step forward for both clarity and accuracy. What is the revised form?
Known as HUD Form 92900-A, Addendum to Uniform Residential Loan Application, this form is an FHA requirement and must contain signatures from the underwriter or “other lender representatives”, along with the signature of the loan applicant.
The revised HUD Form 92900-A may be used by lenders immediately. It is required for all transactions with FHA case numbers assigned on or after March 22, 2021.
These changes are considered the final round of FHA efforts designed to “reduce concerns about significant actions that could be taken against lenders for minor errors in underwriting” according to the press release.
Other modifications FHA has initiated include a revised annual certification statement requirement lenders are obligated to submit (regarding business operations and certification) and in late 2019 FHA launched a revised version of its Single Family Loan Quality Assessment Methodology designed to give lenders a “detailed assessment of how FHA views the severity of various underwriting errors in the mortgages it insures, and the appropriate remedies that lenders must take to address these errors.”
------------------------------
RELATED VIDEOS:
Sometimes It Pays to Refinance
Don't Forget Your Closing Checklist
Monthly Payments Establish Good Credit
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