4-20 FINAL RULE ISSUED TO INCREASE FHA NET WORTH REQUIREMENTS :: The Construction Management Pro

4-20 FINAL RULE ISSUED TO INCREASE FHA NET WORTH REQUIREMENTS

HUD published a final rule in today’s Federal Register increasing net worth requirements for FHA mortgagees and eliminating the FHA approval process for loan correspondents.
Effective June 21, all new applicants for FHA lender approval must have a minimum net worth of $1 million.  Effective May 20, 2011, lenders must have a minimum net worth of $1 million ($500,000 for small businesses).  Additional net worth requirements will go into effect on May 20, 2013.

Loan correspondents will continue to have the opportunity to participate in FHA programs through sponsorship by FHA-approved mortgagees, as is currently the case, or through application to be approved as an FHA-approved mortgagee. FHA-approved mortgagees will now assume full responsibility to ensure that a sponsored loan correspondent adheres to FHA’s loan origination and processing requirements.

Sounds like a bit of deregulation!

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