WASHINGTON (9/3/15)--Federal Housing Administration (FHA) lenders would be required to prove they have not been subject to fraud or other charges under a proposal from the U.S. Department of Housing and Urban Development.
HUD proposed changes in May to the its loan-level form (HUD-92900-A) that contained a provision eliminating the requirement that FHA lenders certify on each loan application that they are not, or have not recently been, subject to certain criminal or civil charges.
Sens. Sherrod Brown (D-Ohio) and Elizabeth Warren (D-Mass.) and Rep. Maxine Waters (D-Calif.) protested the removal of the stipulation in a letter sent July 14.
The current proposal contains the stipulation as part of the annual lender certification from the FHA instead of on the form.
The proposal would require a certification statement from FHA-approved lenders that states the lender:
Comments on the proposal are due Nov. 2.