Magazine article Mortgage Banking

HUD Initiates FHA Lender Insurance Program

Magazine article Mortgage Banking

HUD Initiates FHA Lender Insurance Program

Article excerpt

IN A MOVE LAUDED BY MBA, THE DEPARTment of Housing and Urban Development (HUD) announced another step toward streamlining the process for originating Federal Housing Administration (FHA) mortgages.

FHA's new Lender Insurance Program will enable high-performing lenders to endorse FHA mortgage loans for insurance without a pre-endorsement review by HUD.

This expedited procedure is part of HUD's overall effort to make the processing of FHA loans easier and more cost-efficient so lenders will be better able to offer FHA-insured loans and expand the affordability of affordable financing for potential homebuyers, said HUD Assistant Secretary for Housing and FHA Commissioner Brian Montgomery.

"Today we're taking a giant leap forward in creating a more user-friendly loan origination process for our lending community," said Montgomery. "We can cut costs and processing time for lenders and give more homebuyers the opportunity to choose FHA mortgages when, in many cases, they are a better fit for their circumstances."

A significant victory for MBA, the Lender Insurance Program has been "a goal we have all been working toward in our efforts to modernize FHA," said Kurt Pfotenhauer, MBA senior vice president of government affairs. …

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